Editorial

Closing storage gaps in Assam's potato value chain

Assam Agricultural University (AAU) signing a Memorandum of Understanding with the International Potato Centre (IPC) to boost potato research and the value chain in Assam is encouraging news.

Sentinel Digital Desk

Assam Agricultural University (AAU) signing a Memorandum of Understanding with the International Potato Centre (IPC) to boost potato re-search and the value chain in Assam is encouraging news. Potato farmers in the state having straightforward and affordable access to cold storage remains critical to ensuring a remunerative price. Boosting research is crucial for improving productivity and increasing pro-duction. Bridging the widening demand-supply gap is essential to reducing the state's dependency on procurement from major potato-growing states to meet its requirements. The state's persistent dependency on procurement from other states to meet potato demand also keeps prices volatile. Price fluctuation at the source, coupled with the rising cost of transportation driven by increasing fuel costs, leaves end retail consumers at the mercy of market players. As potatoes are perish-able commodities, a lack of adequate cold storage facilities also compels farmers in some areas to sell their produce at much lower prices. Such non-remunerative prices are significant barriers in the expansion of the area under potatoes and also make farmers reluctant to experiment with new quality seeds and other in-puts to boost productivity. Market estimates show that the state's own production meets only 25% of the demand; yet, distress selling by potato growers due to a lack of storage facilities reflects a stark gap in the val-ue chain. As it is a seasonal crop, the storage facility plays a crucial role in balancing demand and supply while ensuring remunerative prices for farmers. While harvesting is seasonal, demand for consumption and processing persists round the year. The availability of potatoes grown in the markets round the year, there-fore, demands a quality storage facility to prevent post-harvest losses. The growing demand for potatoes from packaged food multinational giants, some of which have moved processing and packaging units to the state, has triggered fresh hopes for farmers to get remunerative prices. However, it is essential for potato farmers who sign buy-back agreements with multinational compa-nies to understand the contract details to protect them-selves from hidden liabilities, unfair quality rejections, or arbitrary price deductions that could deprive them of fair incomes in the long run. Nevertheless, procure-ment of potatoes by such a company at a price higher than what traders offer can strengthen the negotiat-ing capacity of the farmers. Expanding the area un-der a crop is not easy due to fragmented and small land holdings in the state, unless farmers who own such fragmented plots of farmland agree to form collectives, such as farmer producer companies or farmer producer organisations, to scale up the production of certain crops they grow. AAU plans to undertake re-search projects in collaboration with IPC, prioritising economic aspects that can significantly help farmers. Collaborating with IPC and prioritising these economic aspects can significantly contribute to identifying technological solutions that address challenges in en-hancing productivity and overall production. Even af-ter experimentation with different varieties, the pro-ductivity of potatoes in the state has remained much less than the national average. The state's productivity has registered an increase recently, but it is still less than 9 tonnes per hectare against the national aver-age of around 25 tonnes. Without a substantial increase in productivity, the state's ongoing reliance on supplies from other states will continue, and the demand-sup-ply gap will further widen due to increasing consumption and processing demands. Buy-back systems for commercial farming offer farmers a reliable market and good prices; however, these agreements often do not clearly explain what happens when the costs for quality potato seeds, electricity, fuel for irrigation, and transportation rise suddenly. The Agriculture Department can play a crucial role in facilitating the buy-back agree-ment for commercial potato farming, ensuring a mu-tually beneficial arrangement for both farmers and processing industries to achieve the buy-back agree-ment for commercial potato farming and ensure a win-win situation for both farmers and processing indus-tries for sustainable production. Potato farmers get-ting a fair deal in commercial production linkage is piv-otal to increasing their active participation in field dem-onstrations of new climate-resilient varieties aimed at boosting productivity and ensuring sustainable farm-ing insulated from climate shocks. The collaboration between AAU and IPC. which goes beyond routine academic research to set outcome-driven goals, aims to motivate farmers to adopt new and quality seeds de-veloped through joint research and experimentation, ensuring that scientific innovation leads to real pro-ductivity gains for traditional potato growers in the state. A major bottleneck in creating adequate storage facilities is that various central government schemes for strengthening cold chain facilities are demand-driv-en, and automatic storage creation only occurs where investors are present, even if needs are high. A pragmatic solution to overcoming this challenge is to mobi-lise potato farmers to form cooperatives or farmer producer companies to create storage facilities in their area under such demand-driven schemes backed by a viable and sustainable revenue earning model