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Storing up a problem

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    The potato requirement this season is around 45-50 lakh tonnes as against the available 33 lakh tonnes.
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    Soaring potato prices have returned to haunt farmers and average consumers this summer again. Unlike last year when the crisis was caused by surplus production, the blame this season is being thrust on blight — a dreaded plant disease that ruins the crop.

    But even as the state government is struggling to tackle the situation, the real problem apparently lies with the cold storage owners.

    Estimates show that as much as 40 per cent of the potato crop in Bengal has been wrecked by blight. A closer look at the sequence of events, however, only shows that it’s the cold storage owners who are hoarding potatoes and manipulating demand in the market. The effect has precipitated into a crisis, with panic-stricken farmers going for distress sale and consumers facing abnormally high prices at the local markets.

    The directorate of state agriculture department has revealed that the potato production this year has been around 60 lakh tonnes. Out of that lot, a whopping 33 lakh tonnes are stacked up in 402 cold storages spread across the state. The situation is eerily similar to what happened last year — when out of the total produce of 99 lakh tonnes, around 55 lakh tonnes of potatoes were held up in cold storages, leading to a demand-price crisis.

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    This year, while 33 lakh tonnes potatoes are locked up in cold storages, the remaining 27 lakh tonnes are learnt to be rotting away with the state government having no system in place to store the entire produce.

    ... contd.

    Next1234
    Rotting Potatoes or Rotting System?By: Tanuj Agrawal | 07-Jul-2009 Reply | Forward Its high time we begin making our system efficient and get rid of the same old supply chain and distribution network. There is no best way to do a job, the process can continuously be improved. And this is the main lesson we draw from Supply Chain Management. This is the key aspect of any business being turned into a profit or a loss making entity. I think now that Indian bureaucratic system has consistently shown its inefficiency , the same British Raj type IAS officers must be replaced by MBAs, as running a country in this capitalist era is no less than running a Big Organisation. Go for FDI in retail. Promote Contract Farming. Get rid of these middlemen. This will certainly go on helping all the Indians - the farmer , the Consumer. And then the budget need not be special Aam Aadmi UPA budget. Every person will then have money to spend and give a boost to economy rather than virtually creating market by providing money through budget in the name of social sector schemes.
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