Mamata forces vendors to sell cheap,potato disappears from markets
Govt has fixed Rs 13/kg price ceiling,terming scarcity of tuber as man-made.
Cheap potato has disappeared from markets in Kolkata,thanks to a diktat from Chief Minister Mamata Banerjee that traders say is thoughtless and arbitrary and,going by the effects it has produced,counterproductive as well.
About a week ago,the government put a price ceiling of Rs 13 per kg on the popular Jyoti potato,and instructed the police to lodge FIRs against traders who defied the order. Three people have been arrested so far.
The order has driven the normally abundant Jyoti potato virtually out of currency. Traders say the economics just dont work out. Those who make laws do not know the reality on the ground. The authorities have overlooked various problems that we businessmen face, a senior member of Park Circus Market Byabsayee Samity said,referring to poor storage infrastructure and resultant wastage that raises costs.
Vegetable seller Krishna Shaw at the Park Circus Market said,The potatoes supplied by the government cant keep up with the demand. Also,a 50-kg bag which is sold to retailers for Rs 550 contains at least four kg of rotten potatoes,which takes the buying price per kg to nearly Rs 12. Then,many potatoes are small in size,for which customers are unwilling to pay Rs 13,raising our costs further. How are we expected to sell at Rs 13 then?
Shaw said that margins were virtually non-existent,and unless the government relented,vendors were likely to simply stop selling potato.
Some vendors at North Kolkatas Manicktala market have been trying to find ways around the governments price ceiling. We are selling at the stipulated price,but we are not giving any plastic carry bags.
Agriculture Marketing Minister Arup Ray admitted there was a scarcity,but said it was man-made and promised the problem would be solved in the next two days.
We know potatoes are being hoarded,giving rise to an artificial scarcity. I have asked the Enforcement Branch to take action, Ray said. Cold storages were closed for Puja,Diwali and then Bhaiphonta Bhai Dooj. Now they have opened and in two days all the markets in the city will have enough potatoes.
Ray conceded vendors problems,but argued,Even if wastage was reduced and everything else factored in,the cost price would not exceed Rs 12 per kg for retailers,which I think is fair enough.
The minister said a few hundred government outlets had been opened to ensure that people got potatoes at a reasonable price. He alleged that the CPM,Congress and BJP were instigating vendors to keep prices high.
Leader of Opposition Surya Kanta Mishra said a price ceiling creates more problems than it solves. During our Left Front time,we had ensured that five per cent of cold storage space was allotted to agricultural products and,at one time,the state gave Rs 400 crore subsidy to keep prices in check. But setting a price will never work. It will be counterproductive, he said.
The wholesale Metro Cash and Carry store had no potato stock on Tuesday. A Big Bazaar official said they were selling at the governments price only because we have no choice but to abide by the rules.
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