For the first time in three years, the government is mulling exports of potato to South East Asian countries to arrest the steep fall in local prices which has prompted farmers to distress sell their produce in many areas.
Indicating, the government?s willingness to re-start potato exports, a Reuters report quoting farm minister Sharad Pawar said that exports might be allowed. Pawar made the statement in Parliament
However, the move could draw flak from many quarters as already the opposition has been attacking the government for spiraling prices of essential commodities.
India exports negligible amount of potato. In 2006-7, India exported only 89,033 tonne of potatoes worth Rs 57.69 crore out of the total domestic output of more than 25 million tonne. Indian potato is largely exported to Sri Lanka, UAE, Mauritius, Nepal, Singapore, Maldives, Kuwait etc.
Only three months back potato prices were on the boil with prices rising to an average of Rs 20-25 per kg. However, since then prices have cooled down after the arrival of early rabi crop.
According to a department of consumer affairs data, retail prices of potato in the last three months have declined by a whopping 350% in Kolkata, to Rs 4 per kg on Wednesday from Rs 18 a kg in December. In Delhi , prices have come down to Rs 9 a kg from Rs 18 a kg during the same period.
With prices expected to fall further on expectations of higher output during the rabi season, there have been reports of distress sale of potatoes by farmers, particularly in the country?s largest producing state of West Bengal.
?Harvesting of rabi potato crop is continuing in Punjab, Uttar Pradesh, West Bengal, Madhya Pradesh, Haryana, Maharashtra and prices are expected to decrease more in coming months,? Nashik-based National Horticulture Research and Development Foundation (NHRDF) has observed in its latest crop. Uttar Pradesh and West Bengal produce close to 70% of the total potato production in the country.