Price volatility hitting Punjab potato growers.

Byline: PROF. DR. KHALID MUSHTAQ

Sahiwal and Okara are the two major potato producing districts in Punjab with more than 60 percent share in national production. Potato is high input intensive cash crop in this area. Potato sowing is usually done during the months of September and October and harvest starts usually from January to March. Potato prices are usually determined by supply and demand forces across the wholesale markets in Punjab. Seasonal output price volatility and high input prices reduces farmers profits and leave them on the mercy of market intermediaries who hold strong market power.

Smallholders are vulnerable to these price shocks as they lack holding capacity, financial resources and coping strategies. Potato prices are down by 8% in Okara market in January 2022 as compared to January 2021. Similarly, prices are further down by 15% in February 2022 as compared to February 2021. Moreover, prices are further down by 40% in March 2022 as compared to March 2021. Potato supply is up by 9% in Jan-Mar-2022 as compared to Jan-Mar-2021. This indicates that farmers experienced bumper potato crop this year.

During field survey at Okara and Sahiwal districts we have observed that farmers store their potato crop at farm premises covered with rice straw for about two months. Banks can develop some financial products against this available stock.

Recently launched Warehouse Receipt Financing scheme is a good step forward by banks that can also be extended to potato growers as well. Farmers should be encouraged to diversify their crop sets including forests and raising livestock that will work as insurance coverage. Farmer's profitability can further be increased by increasing per acre yield. According to FAO estimates, Pakistan's per acre yield is 22 tons per hectare whereas, Brazil, Iran, USA, and Netherland are getting 29, 31, 49 and 42 tons/hectare respectively.

Seed is the major contributing factor to enhance yield. Pakistan imports seed from Netherlands and farmers complained about substandard import of seed. This demand careful State intervention to ensure high quality seed import.

Okara Market Potato Prices (Rs. / 100Kg)

Dates###Jan-21###22-Jan###% Change

1-Jan-21###3,100.00###2,750.00###-11

2-Jan-21###3,100.00###2,950.00###-5

4-Jan-21###3,050.00###3,050.00###0

5-Jan-21###3,150.00###2,600.00###-17

6-Jan-21###3,250.00###2,600.00###-20

7-Jan-21###3,250.00###2,800.00###-14

8-Jan-21###3,250.00###2,800.00###-14

11-Jan-21###3,250.00###...