Trader said that the state is always suffering from over capacity and there is always sufficient stocks available at the cold storages to meet any sort of surge in demand.

West Bengal, which at present, is the second highest producer of potatoes after Uttar Pradesh, has an annual production of almost 65 lakh tonnes. The productivity is also second in the country at 26 tonne per hectare and the average consumption within the state is merely 40 lakh tonne. Neighboring states purchase around 12.5 lakh tonnes which leaves with an excess of another 12 lakh tonnes.

The "alu-bonds" are issued by the cold storage owners against the amount stored by the farmers. In the past, these bonds were traded among the farmers and also among the traders. However, against thepresent back drop of excess inventory there is hardly demand for these bonds. Moreover, it is always unremunerative for the farmers to get their stocks cleared from the cold storages.

"Cold storage rentals are administered by the state government, which at present is Rs 50 for every quintal, out of which 50 per cent have to be paid at the beginning of the season. So the farmer pays Rs 0.50 for every kg as rent and the prices available at the wholesale markets in the villages is only Rs 2 a kg," a state government official clarified. So, just after harvesting, if a farmer gets a price of around Rs 2.25 - 2.50 a kg, they immediately sell it off.

If they do stock it up, after paying 50 per cent rental, still they are reluctant to clear it at the end of the season.

"At present, the potato season is about to end and the new crop is almost due. The current wholesale prices at the block level is only Rs 2 per kg. To a farmer it is not at all remunerative considering the fact that they will have to clear therest 50 per cent rental," a trader clarified.

However, the potato prices at the retail level in Calcutta and other cities of the state is around Rs 6 per kg. The government official said: "It is unbelievably high. Actually the middle men are making the money and the farmers are left in the dark."

The trader clarified that the rise in the potato prices at the retail level is mostly due to the freight charges, which is born by the middle men.A cold storage owner said: "Most often it is found that the farmers are clearing their stocks from the cold storages. The rent falls due. Then we are forced we find out some way to sell them. In such situation how could you expect to have any significance of the alu-bond?"