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Potato price crash may lead to financial crisis, warns WBCSA

The West Bengal Cold Storage Association (WBCSA) on Friday raised the alarm over a sharp drop in wholesale potato prices and warned of severe financial losses for farmers and cold storage operators

News Arena Network - Kolkata - UPDATED: July 26, 2025, 08:41 PM - 2 min read

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WBCSA president Sunil Kumar Rana said the widening gap between wholesale and retail prices is putting immense pressure on farmers, who hold nearly 80 per cent of the potato stock stored this year (Representative Image)


The widening gap between wholesale and retail prices of potatoes in West Bengal is worrying farmers and cold storage operators, especially since the former hold nearly 80 per cent of the potato stock this year due to last season’s ban on inter-state movement.


The West Bengal Cold Storage Association (WBCSA) on Friday called for urgent state intervention to prevent the eruption of a deep rural economic crisis as wholesale prices of potatoes drop to as low as ₹9 per kg against the state-declared minimum support price (MSP) of ₹15 per kg, putting immense pressure on farmers who are now staring at financial losses.


“The entire ecosystem of potato cultivation and storage is at risk,” said Sunil Kumar Rana, president of WBCSA.
Cold storages in West Bengal are currently operating at full capacity, containing a record 70.85 lakh metric tonnes of potatoes, including an additional 10 lakh tonnes of early variety due to last season’s ban on inter-state movement. 

 

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“Unless the government intervenes to ensure ₹15/kg wholesale price, the rural economy will collapse and farmers will be discouraged from sowing next year,” warned Subhajit Saha, the association’s vice-president.


He further alleged that the state government was yet to fulfil its March promise of procuring 11 lakh tonnes (or 2.2 crore packets) of potatoes from farmers.


In districts such as Burdwan, Bankura, Medinipur, and parts of North Bengal especially, farmers are now suffering losses of ₹400-500 per quintal.


WBCSA has urged the state to undertake corrective measures, including immediate procurement at MSP, revival of inter-state and international potato trade, and incorporation of potatoes into public welfare schemes such as mid-day meals.


It also recommended introducing a transport subsidy to facilitate movement of stock outside the state.


"If these steps are not taken immediately, a demand-supply imbalance will occur, sowing will shrink, cold storages will remain under-utilised, and the rural economy could face long-term damage," Rana said.


The association has warned that without concrete policy support, the state's ₹10,000-crore potato economy could face a cascading crisis, impacting farmers, storage units, and the broader rural economy.

 

 

 

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