Chandigarh/Patiala: Potato growers in Punjab are currently grappling with a severe economic recession. Ironically, despite this being an election year, neither the ruling party nor the opposition MLAs or MPs have raised their voices to resolve this critical issue. Even farmer unions, which typically act as strong pressure groups on issues related to the state’s economy, seem limited to issuing statements on social media and in the press.
The Economics of Loss: Estimated ₹1,500 Crore Hit The ground reality is alarming. Currently, the wholesale price of table potatoes in Punjab is hovering between ₹300-400 per quintal, while the processing variety (sugar-free) is selling for ₹400 to ₹500 per quintal. At these rates, farmers are generating an average income of only ₹40,000 to ₹50,000 per acre.
In stark contrast, when land lease costs are included, the expense to raise a potato crop is at least ₹90,000-95,000 per acre. Consequently, farmers are suffering a direct loss of ₹50,000 per acre. According to data from the Punjab Horticulture Department, potato cultivation covers approximately 3 lakh acres in the state. Based on this, farmers are set to suffer a direct cumulative financial loss of ₹1,500 crore this year.
The Betrayal of Contract Farming Farmers who entered into contract farming agreements with private companies at rates of ₹900 to ₹1,000 per quintal to hedge against market risks are now feeling cheated. Many companies have reneged on their written agreements.
The plight of Dalvir Singh, a farmer from Kuka village in Patiala district, is a testament to this. He had contracted 10,000 bags of potatoes with a company based in Aligarh (Uttar Pradesh). The agreed rate was ₹1,000 per quintal for January and ₹850 for February. However, the company did not purchase a single bag in either month. Waiting for the company delayed his harvest, causing a “double loss” as market prices crashed further and his subsequent maize crop sowing was also delayed.
Similarly, Rajinder Singh from Uday village in the Nabha area, along with hundreds of other farmers, purchased expensive seeds at ₹2,500 per bag from a Hapur-based company, under the assurance that the company would buy back the produce at ₹1,000 per quintal. The company has now refused to purchase the crop. Many companies are also imposing arbitrary cuts in the name of quality or making excuses to buy at lower rates.
Political Apathy Farmers have expressed anger that the “AAP” government, which claims to be the guardian of farmers’ interests, and MPs from other parties remain mute spectators to this exploitation. The only relief came from Mukesh Rajput, the Lok Sabha MP from Farrukhabad, who raised the issue in Parliament last week and suggested the formation of a ‘Potato Board’ to the Central Government to stop the exploitation of farmers.
