Potato farmers in West Bengal are cutting down acreage for early varieties due to unremunerative prices and ongoing financial losses. A record harvest earlier this year has left cold storages heavily stocked, prompting industry bodies to seek government transport subsidies.

West Bengal, India's second-largest potato grower, is seeing a decline in acreage for early potato varieties as market prices remain low and unremunerative for producers. Industry representatives warn that if prices do not improve next month, the state could see a wider fall in total potato cultivation area for the 2026-27 season. For the 2025-26 season, the total area under potato cultivation stood at approximately 5 lakh hectares.

Currently, truck-loading prices at cold storage gates for the average Jyoti potato variety are ruling at ₹500 per quintal, marking a decline of ₹100 compared to the same period last year. According to Patit Paban De, a senior member of the West Bengal Cold Storage Association, a farmer's actual earning out of the ₹500 per quintal is only ₹150 to ₹170, which falls below the cost of production. Farmers have reportedly resorted to distress sales throughout the year, resulting in lower demand for seeds and reduced cultivation of early varieties like Pukhraj.

The depressed pricing stems from a record potato production of around 140 lakh tonnes in West Bengal for the 2025-26 season, the highest in five years, driven by favourable weather conditions and higher yields. This bumper output led to cold storage loading levels reaching nearly 80 lakh tonnes, compared to a normal loading range of 70 to 72 lakh tonnes. Data indicates that cold storages across the state are still holding roughly 37 to 38 percent of their total loading capacity, an unusually high figure for this time of the year.

In local markets, wholesale prices for Jyoti potatoes in Kolkata are prevailing at around ₹11 to ₹12 per kg, down from ₹15 a year ago. Lalu Mukherjee, secretary of the Paschim Banga Pragatishil Alu Byabsayee Samiti, noted that due to heavy financial losses, farmers are currently unable to begin sowing early varieties.

In response to the market conditions, the West Bengal Cold Storage Association and the Paschim Banga Pragatishil Alu Byabsayee Samiti have approached the Suvendu Adhikari-led state government to request financial assistance. Specifically, they have urged authorities to extend a transport subsidy for interstate trade via road transport. In September, the government announced a subsidy of ₹100 per quintal to support interstate potato trade via railway rakes.

Historically, West Bengal exported 20 to 25 lakh tonnes of excess potatoes annually to neighboring states such as Odisha, Bihar, Jharkhand, and Assam. However, interstate supply restrictions imposed by the erstwhile Mamata Banerjee government in 2024 to control local prices caused traders to lose major markets to Uttar Pradesh. Although those restrictions were later lifted, the surplus remains a significant challenge for local supply chains and farm economics.

"This situation highlights the direct economic impact of supply-chain imbalances and overproduction on primary agricultural producers. When bumper yields are not met with adequate interstate distribution channels and market access, farm-gate prices inevitably drop below production costs. For sustainable agribusiness operations, policy frameworks must focus on efficient logistics, timely transportation subsidies, and predictable trade policies to protect farmers from deep losses and stabilize long-term crop acreage." — Dr. Shishir Gupta, Founder & CEO, StartupLanes

Recent StartupLanes Articles

Browse through our 30 latest publications on venture capital, startups, and angel investing.