Indian Potato Procurement Crisis: Bayer & NAFED Step In
Odisha, an eastern state in India, is facing a severe potato shortage, which has driven wholesale prices up to ₹55-60 per kilogram (71 US cents) over the past month, from a national average of ₹25.9 (31 US cents )at the beginning of 2023.
This price escalation has led to significant public unrest, with protests erupting in Choudwar, Cuttack. Social organisations have blocked vehicles transporting essential goods to West Bengal, the primary supplier of potatoes to Odisha.
The crisis began when West Bengal ceased potato exports to stabilise local prices. The halt was a response to a 20% reduction in potato production due to unseasonal rains.
As a major producer accounting for 23.51% of India's potato output in 2021-22, West Bengal’s export ban has severely impacted states like Odisha, which rely heavily on these supplies.
NAFED’s strategic intervention
In response to the potato shortage exacerbated by West Bengal’s export restrictions, the Odisha government has decided to procure potatoes from Uttar Pradesh through the National Agricultural Cooperative Marketing Federation of India (NAFED).
Food Supply and Consumer Welfare Minister K.C. Patra announced, “The state government will purchase potatoes through NAFED and supply them to consumers at ₹30 (36 US cents) per kg.”
Initially, Odisha has placed an order for 300 metric tonnes, expected to arrive by next weekend. These potatoes will be distributed through government retail outlets in Bhubaneswar, Cuttack, Rourkela, Sambalpur, and Berhampur.
Patra emphasised the importance of efficient distribution, instructing officials to ensure a seamless and hassle-free sale.
The Odisha government’s previous attempts to achieve self-sufficiency, such as the 2015 mission, failed due to inadequate cold storage facilities and poor market linkages.
Now, with the procurement from Uttar Pradesh, the state is also distributing potatoes at fair-price shops for ₹100 (US$1.19) for 3 kg to ease the crisis.
The government’s strategic shift aims to reduce reliance on West Bengal and stabilise the potato market in Odisha. The expectation is that this move mitigates the impact of the supply disruption and manages consumer demand more effectively.
However, challenges remain, including increased transportation costs and potential quality issues due to the extended supply chain from Uttar Pradesh. Despite attempts by some traders to smuggle potatoes, these efforts have not sufficiently addressed the demand, highlighting the intricate connection between agriculture and politics in India.
Bayer’s innovative solutions in potato farming
To address broader agricultural challenges, Bayer has partnered with Solynta to introduce new hybrid potato varieties in Kenya and India using true potato seeds. Unlike traditional seed tubers, these true seeds are disease-free, require only 25 grams per hectare (as opposed to 2,500 kg of tubers), and have a longer shelf life.
This collaboration represents Bayer’s entry into the global potato market, combining Solynta’s innovative breeding techniques with Bayer’s extensive distribution network.
Solynta’s Director, Charles Miller, highlights the significance of this partnership, noting that “Potatoes are the third largest staple crop in the world... This synergy will bring benefits to the growers,” enhancing food security and alleviating hunger.
Charles also comments that unusual weather in Europe has impacted potato seed availability, increasing the need for resilient crops in regions like Kenya and India, where seed insecurity is a critical issue.
True potato seeds offer several advantages, including faster breeding cycles, disease resistance and reduced reliance on chemical treatments.
“By using true seeds, we can scale supply to growers within 12 months, compared to six to eight years with the traditional tuber route,” Charles adds.
The Indian Potato Project: Bayer CropScience
In India, Bayer CropScience has teamed up with PepsiCo to improve potato cultivation and address challenges like late blight disease. This initiative is part of a broader shift in Indian agriculture towards processing-grade potatoes, driven by the increasing involvement of global and domestic food companies.
India’s diverse growing conditions enable year-round production of processing-grade potatoes, but managing late blight remains a critical challenge. Bayer CropScience’s “5P” production process is designed to support farmers effectively through:
- Production: Providing high-quality seeds and agronomic inputs.
- Protection: Offering plant protection kits tailored to local conditions.
- Programme Monitoring: Supervising farm activities and providing training.
- Passports: Using traceability tools to monitor farm activities and assess outcomes.
- Post-Harvest: Training farmers to grade potatoes to meet PepsiCo’s specifications.
This partnership not only aims to enhance potato quality and farmer incomes but also promotes sustainable agricultural practices. By leveraging Bayer’s expertise, the initiative supports the broader goal of improving agricultural productivity and sustainability in India.
******
Make sure you check out the latest edition of Procurement Magazine and also sign up to our global conference series - Procurement & Supply Chain LIVE 2024
******
Procurement Magazine is a BizClik brand.