News Excerpt:

Odisha is experiencing a severe potato shortage, causing prices to rise to Rs 55-60 per kilogram. This has led to public anger directed at West Bengal, its main supplier.

What’s Behind the Potato Crisis?

• Odisha relies heavily on neighboring West Bengal for its potato supply.
• However, since July 2024, the West Bengal government has imposed a ban on potato exports to other states in an effort to stabilize local prices.
• West Bengal experienced a 20% decrease in potato production this year compared to the previous year, largely due to unseasonal rain during December and January when potatoes are sown.

Demand-Supply Mismatch

• Potato production in Odisha is very low as compared to demand.
• Market sources estimate that Odisha’s annual potato demand exceeds 13 lakh metric tons (MT).
• However, the state’s own production is only about 3 lakh MT, concentrated in small regions like Kandhamal, Koraput, and Kalahandi.
• As a result, Odisha relies on other states for 90% of its potato supply.

Odisha's Persistent Potato Supply Crisis and initiatives

• This is not the first time Odisha has faced a potato supply crisis.
• In April 2015, the state launched an initiative aimed at making Odisha a potato-surplus state by increasing production and improving storage and distribution systems through incentives.
• However, this mission fell short of its goals. The target was to have 60,000 hectares under potato cultivation by 2015-16, but the area under cultivation only increased from 15,000 hectares to 25,000 hectares by 2020-21.
• There was also minimal growth in production, which rose slightly from 3.02 lakh MT in 2015-16 to 3.09 lakh MT in 2020-21.
• The mission's failure is largely attributed to insufficient cold storage facilities and weak market linkages for farmers, leading to distress sales post-harvest.
• Currently, only 36 cold storage facilities are operational in Odisha, while 97 are non-functional.

Addressing the Crisis

• To mitigate the crisis, the Odisha government has decided to procure potatoes from Uttar Pradesh through the National Agricultural Cooperative Marketing Federation of India Ltd (NAFED).
• The government has already placed an order for 300 MT of potatoes in the first phase, which will initially be distributed through government retail shops in Bhubaneswar, Cuttack, Rourkela, Sambalpur, and Berhampur.