Lufthar Rahman and his neighbours at Abhirampur village in Hooghly in West Bengal have sowed more Atlanta variety of potato this year. It is for use by PepsiCo India for making flakes and other Frito-Lay products.
The political opposition to contract farming notwithstanding; at least 30 per cent more farmers entered into agreements with PepsiCo this year. The area under cultivation has also gone up by over 15 per cent to 7,000 acres.
Dominant trend
According to Ram Pada Pal, President of West Bengal Cold Storage Association, nearly 13,000 farmers have entered into a contract arrangement with PepsiCo for supply of Atlanta potatoes.
“The number of farmers engaged in contract farming of potatoes in Bengal has witnessed a steady increase from just about 1,800 in 2008-09 to 10,000 in 2011-12,” Pal told
PepsiCo’s procurement from the State is set to rise to 70,000 tonnes this season compared with 60,000 tonnes last season.
Bengal is the largest supplier of potatoes to Frito-Lay’s India operations, accounting for almost 30 per cent of the company’s total procurement, which was about two lakh tonnes in 2011-12 spread across nine States.
The rise in the sowing area for Atlanta potato is despite farmers earning less than half for cultivating it compared to the usual Jyoti variety in 2011-12.
Assured returns
PepsiCo had promised Rs 580-600 a quintal depending on the quality of produce in 2011-12 to its contract farmers. However, the wholesale price of Jyoti potato ruled between Rs 1,200 and Rs 1,300 a quintal during the year.
“Though Jyoti was fetching higher prices this year, the yield was relatively lower. Moreover, returns from Jyoti potato vary from year-to-year depending upon the yield and other factors, whereas in the case of PepsiCo we get an assured price,” Rahman said.
PepsiCo, Rahman said, has agreed to pay Rs 600-640 a quintal for 2012-13.
Apart from fetching an assured price for producing the Atlanta potato, farmers also stand to gain by selling some of the rejected potatoes in the open market.
According to farmers, the company procures only potatoes that meet its specifications.
“Last year, I had produced about 726 quintals of Atlanta potatoes, of which nearly 115 quintals were not procured by the company. I sold these along with the Jyoti variety earning nearly Rs 1,300 a quintal,” another farmer said.
shobha.roy@thehindu.co.in