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Potato auction- should there be a season?

December 15, 2011
in Uncategorized
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The Food Corporation of Bhutan (FCB) is looking at the feasibility of identifying a time period for auctioning potatoes to prevent hoarding.

According to FCB auction yard officials, farmers hoard the potato harvest in the hope of better price. But with hundreds of truckloads of potatoes arriving at the auction yards at the same time, the price, at times, drops.

“Potatoes from Chapcha and Jabana will be ready for auction by July or August. They should be auctioned off by October. Farmers in Phobjikha and Bumthang harvest late. Their potatoes could be brought to the auction yard at this time,” said Langa Dukpa, a senior manager with the FCB.

The auction yards are also not able to accommodate all the trucks and dispose them off quickly causing immense problems for the farmers.

The same problem occurred this year.

Last year, at this time of the year, a kilogram of potato fetched Nu.13 to Nu.16 at the auction yard.

This year, a kilogram of potato, fetched just about half, at Nu.5 to Nu.9 a kilogram.

There are also other reasons why farmers are encouraged not to hoard.

When potatoes are stocked for a longer period of time, they accumulate sugar making the potatoes sweeter. They are not preferred by the buyers.

The new system however cannot guarantee better price which is regulated by market forces.

“We cannot guarantee good price. Farmers may get or may not get good price. We plan to discuss the matter with the potato traders.”

The traders have their own concerns. Apart from the price, they are worried about the road condition which can be blocked by landslides in summer and snow in winter.

“The FCB may have to consider the road accessibility when they discuss the auction period,” said Phuntsho.

“If the road is good, then transportation is not a problem. This year, we were delayed mainly by the bad road condition in the summer,” said Wangchuk.

Last year, from November till mid December, about 3700 metric tons of potatoes arrived at the Phuentsholing FCB auction yard.

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