Purely from market price end, 2012 was a watershed year for farmers in West Bengal. Paddy and potato – the two major agri commodities produced in the State – have fetched higher market prices in last one year, when compared to 2011.
The analogy, however, may not hold good if cost push and market uncertainty are taken into account. Net realisation for paddy has hardly improved against 25-30 per cent cost push on account of fertiliser and labour costs.
The year, however, brought cheers to potato farmers with prices moving ahead of input cost inflation. And, early indications suggest that the new crop, slated to hit the market between January and March, may also get good prices riding on lower crop.
However, as a parallel development potato farmers are showing a clear preference to contract farming against stable or assured return potential than taking the market risk.
Paddy
With paddy fetching higher price in open market this season, roll back of money was better for farmers this year. However, this was not sufficient to make good for the accumulated debts.
In 2011, paddy prices had crashed in the open market following a bumper crop and stalled procurement by rice mills because of their inability to offload stocks.
Farmers were finding it difficult to offload their produce at the open market price, which was ruling around Rs 850 a quintal last year.
However, the situation improved in 2012 with the open market price of paddy ruling around Rs 1,200 on account of an estimated dip in production.
Though the money flow situation improved for paddy growers this year profits have been muted on the back of a subsequent rise in costs. Input costs, which include primarily labour and fertiliser costs have witnessed a 30 per cent jump so far. The higher open market prices have therefore been minimised by the rise in input costs.
Prices to rule firm
The price is likely to inch up further during the coming months on account of an estimated dip in production and a steady demand from States such as Andhra Pradesh and Tamil Nadu, said Gobinda Das Ghatak, Director, Shyama Sakti Rice Mill in Burdwan – commonly called rice bowl of Bengal.
According to agri-experts, West Bengal might witness a 10-15 per cent drop in paddy production this season on account of a dip in sowing (due to delayed monsoon and poor weather conditions).
Potato farmers happy
Potato farmers, on the other hand, were rejoicing the steady rise in prices during this year.
Unlike in 2011, when supply glut and weak market sentiments had pushed down potato prices to record low levels, 2012 saw prices firming up in the open market.
Wholesale price of potatoes, which were seen hovering around Rs 250-400 a quintal during a major part of 2011, started improving and was ruling around Rs 950-1,250 in 2012. The higher prices, however, came on the back of a dip in potato production across the country. Potato production dropped to about 85 lakh tonne in 2011-12, against 95 lakh tonne last year.
New potato crop
According to sources, potato prices could remain firm at current levels on account of an estimated dip in production this season.
Potato sowing in the State has been delayed by over a fortnight this year on account of unfavourable weather conditions, said, Ram Pada Pal, President, West Bengal Cold Storage Association (WBCSA).
Though it would be difficult to estimate the production of the tuber, however, sowing of the crop could be almost at par or a little more than that done last year, he said.
Contract farming
An increasing number of potato farmers in Bengal are also going in for contract farming to get assured returns.
According to the WBCSA, the number of farmers engaged in contract farming of “Atlanta” variety of potatoes for Pepsico in Bengal has increased from just about 1,800 in 2008 to around 13,000 in 2012.
The area under contract farming has increased by over 15 per cent to about 7,000 acres in 2012-13.