West Bengal potato storage price increase to be delayed until after election

The Bengal state government may opt to defer a rise in the price of potato cold storage in light of the fact that an election is coming. Any rise in prices is unlikely to be popular with the electorate.

The West Bengal Cold Storage Association has already been informally sounded out by the government about the probable hike and possible deferred announcement of it.

Usually, the state government announces the storage rate of potato every year before the commencement of the potato harvesting. The West Bengal Cold Storage Association has been demanding a minimum hike of Rs 36 per quintal of potato this year. The present rate is Rs 101 per quintal.

The cold storage facility owners argue that operational expenses have increased considerably over the past two years, due to increased electricity rates and salary costs. The state government have indicated that the cost of storage is likely to rise, but have not given more details at this stage.

According to one of the leaders of the Cold Storage Association, the government would allow them a very nominal increase and hinted at that the announcement would be made around May 15 once the Panchayat election was over.

There have been cases of cold storage facilities closing down as prices of operations rise, whilst cost of storage remains the same.

The association points out that others states have increased prices, whilst the West Bengal rates have stagnated. In the others states, though, the prices are set by a cold storage owners cooperative and not, as in Bengal, by the state government.

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Source: FreshPlaza/Business-Standard.com