India: Agra growers in distress as potato goes cheap

Farmers in India's potato-growing belt of Agra region, which accounts for more than 30 percent of the country's yield, are in peril as market prices continue to fall below the cost of cultivation. A bumper summer crop has not helped as they are under pressure from cold storages to move their stocks fast.

A 45-year-old potato grower, Tota Ram, hanged himself to death last week in the Akola block of Agra district. Villagers said he was under heavy debt and unremunerative market prices left him in distress. Cultivators are also under acute stress as cold storages -- totalling 750 in the districts of Mathura, Firozabad, Etah, Mainpuri, and Agra -- have asked them to lift their stocks fast.

'But we are not able to even break even,' farmer Yashpal from Khandauli block, which boasts of the highest yield and the best quality in India, told IANS. 'The scenario is really grim.' In February this year, showers and hail destroyed part of the crops, but the summer yield has been bumper and cold storages are full.

'This year Uttar Pradesh Horticulture Minister Narayan Singh arranged for the sale of potatoes in Mumbai and bulk purchase by groups like Reliance,' according to the Agra Cold Storage Association. 'But our yield has been good and there is hardly any scope for its absorption in national markets as potatoes from areas like Karnataka and West Bengal have already flooded markets.'

Farmers say cold storage owners are pressurising them to lift their stocks soon. But since there is no demand, the prices could crash if the supply is increased. Further, they are distressed with storage fees being hiked from Rs. 120 to Rs. 140 a quintal.

'All kinds of additional levies in the name of term loan, depreciation and power tariff hike are being collected from farmers,' says Mukhtiar Singh of the Aloo Utpadak Kisan Samiti. 'The district magistrate should intervene.'