Potato production in Uttar Pradesh is facing pressure as production costs exceed market prices, according to statements from the Samajwadi Party.
In western Uttar Pradesh, including the Kannauj belt, the landed cost of production has risen to over ₹1,000 per quintal (US$12.00 per 100 kg), while mandi prices are around ₹800 per quintal (US$9.60), resulting in a gross loss of about ₹200 per quintal (US$2.40) before storage and marketing costs.
Cold storage charges of ₹340 to ₹380 per quintal (US$4.08 to US$4.56) increase total delivered costs to between ₹1,340 and ₹1,380 per quintal (US$16.08 to US$16.56), above current market returns. Similar conditions are reported in the Firozabad and Agra regions.
Input costs have also increased. Urea is capped at ₹242 per 45 kg bag (US$2.90), but availability at this price is limited, with higher prices reported in the market. DAP fertiliser has increased from ₹1,200 to ₹1,350 per bag (US$14.40 to US$16.20), and increased NPK use has raised production costs.
"Landed cost of production in western U.P. (Kannauj belt) has risen to over ₹1,000 per quintal (₹500 per 50 kg), market prices are clearing at around ₹800 per quintal, leaving farmers with a gross loss of around ₹200 per quintal before storage and marketing expenses. Adding prevailing cold-storage charges (₹340-380/qt) pushes total delivered cost to ₹1,340-1, 380/qt, far above realizable prices. Urea's MRP is capped at ₹242 per 45 kg bag via subsidy, but ground reports indicate near-zero availability at this rate, forcing purchases at higher informal prices. DAP (a key non-urea fertiliser) has seen its MRP rise from ₹1,200 to ₹1,350 per bag, and intensified NPK use raises per-acre outlay," said Ram Pratap Singh.
Farmer groups are protesting storage rates and calling for procurement and input support measures. "Cost inflation, storage rent meaning Input cost inflation (seed, labour, fertiliser, energy) combined with sharp, weakly regulated cold-storage charges has turned storage from a stabilizer into a loss multiplier. The policy asymmetry, unlike cereals, potatoes lack an MSP or price-deficiency buffer, forcing farmers to absorb price, storage, and input risks simultaneously. The bottom line is that without correcting storage economics and price risk-sharing, potato farming in western U.P. will remain structurally unviable, turning a productive cash crop into a recurring rural-distress trigger," said Nasser Salim.
Source: The Hindu
