Western Australia's Parliament has cleared the way for full deregulation of the state's potato industry, passing legislation to abolish the controversial Potato Marketing Corporation (PMC).

Western Australia's potato industry will be deregulated in July and the highly restrictive Potato Marketing Corporation (PMC) abolished by the end of the year.

Potato growers say the West Australian industry has 'collapsed' amid speculation over the timeline for deregulation.

The Premier of Western Australia, Colin Bartlett, reportedly told The West Australian that it was time for rules that dictated the varieties, quantities and price of potatoes grown in Western Australia - and the Potato Marketing Corporation - to go.

Tony Galati, owner of the West Australian Produce Chain 'Spud Shed', wants to add up to four extra stores to his existing Spud Shed network over the next few years and is working on opening up export markets for Western Australia potatoes.

The Potato Marketing Corporation of Western Australia has announced plans to take legal action against Galati, who owns a chain of grocery stores called the Spudshed as well as being one of the state’s largest growers.

Potato growers in Western Australia have invested heavily in a potato marketing program aimed at stopping the decline in consumption per capita of fresh potatoes.

The Potato Marketing Corporation of Western Australia has started a campaign to increase the consumption of fresh potatoes.