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Chapter f

INTRODUCTION

1.1 Origin and History of Potato


1.2 Trends of Potato Production
1.3 International Scenario
1.4 National Scenario
1.5 State and District Scenario
1.6 The Potato in 21st Century
1.1 Origin and History of Potato

The potato is a member of the nightshade family (Solanaceae) and originated


in the Peruvian and Bolivian Andes of South America. Related plants in
the nightshade family include peppers, eggplants and tomatoes and weeds
like hairy nightshade and black nightshade. The same potato species as
the one we cultivate today (Solarium tuberosum) and related species were
gathered and cultivated for thousands of years before the European explorations.
Potatoes were taken first to Spain around 1570A.D. and about 20 years
later to England. They first reached North America from England in
the early seventeenth century. Potato production spread from these two
early European introductions and they are now grown in nearly every
part of the world.
During the early period of cultivation in Europe, North America and
elsewhere, potatoes were grown decade after decade from original selections
and no new cultivars were introduced. Following the Irish potato blight
in the 1840, crossing was increased in North'America and many,new
cultivars were selected in the second half of that century. From this
early breeding work the fore-runners of modern potato varieties were
developed.
Common cultivars of 25 to 100 years ago included: Early Rose, Green Mountain,
Irish Cobbler, White Rose, Early Ohio, Burbank and Red McLure. Russet Burbank
was selected over 100 years ago and still remains one of the most widely grown
varieties in North America. Records from Manitoba show that Irish Cobbler,
Gold Coin, Netted Gem (Russet Burbank) and Early Ohio were recommended
varieties in 1926.*1
The Andean Mountains of South America is the birthplace of the “Irish”
white potato that we eat today. The Aymara Indians developed over two
1 Scott, G. and Maldonado (1998), “Potato facts- A compendium of key figures and analysis for
32 important potato producing countries” International Potato Center (CIP). Lima, Peru
available at- http://www.cipotato.org/market/potatofaets/potato facts.htm
1
hundred varieties on the Titicaca Plateau at elevations above 10,000 feet.
They were the innovators of the freeze-dried potato, or chuno. Inge
Schjellerup, in “The Cultivated Wild One”, describes how chuno is made.2
“Chino ” is still produced as it was at the time of the Incas. The potatoes
are spread on the ground on frosty nights. During the day they are covered
with straw to protect against the burning rays of the sun. By this way, the
potatoes go completely white. After exposure to several nights of frost,
women and children trample on the potatoes to get rid of moisture and
wear away the peel. The potatoes are then put in a stream with running
water for a few weeks in order to wash out the bitter taste. Finally they are
dried for about 14 days and can be stored without problem for up to 4
years.
The influence of potatoes permeated the Incan culture- Potato-shaped pottery
complete with eyes is commonly found at excavated sites, sometimes with
tiny heads growing out of the little eyes. Incan units of time correlated to
how long it took for a potato to cook to various consistencies. Potatoes
were even used to divine the truth and predict weather.
Potatoes have been one of the mankind’s most important food staples for
the past millennium. First cultivated in the Andes Mountains of Peru and
Bolivia they formed the basis of the South American diet.
The Spanish conquistador Pedro Cieza de Leon in his journal “Chronicle
of Peru” wrote the first recorded information about potatoes in 1553.
The Conquistadors didn’t find the gold and silver they were looking
for but quickly cornered the local potato market. Potatoes were soon a
standard supply item on the Spanish ships; they noticed that the sailors
who ate papas (potatoes) did not suffer from scurvy.3

2 www.cantaremusic.com/stories/potato_history.htm
3 Scott, G.J. (ed.), (1992) Informe final. PRACIPA - Comercializacion. Lima (Peru). Progranta
Andino Cooperativo de Investigacidn sobre Commercialization en Papa (PRACIPA). Published
by CIP. P. 134
2
No one knows exactly when potatoes were first planted in European soil
but in 1573, records of a Spanish hospital in Seville show that sacks of
potatoes were ordered for provisions. The potato was somewhat slow to
catch on in part because people realized that it was a member of the
nightshade family, all of which are very poisonous. At about the same
time, some historians have written that Sir Francis Drake brought back
some potatoes from a trip to the West Indies. If so, these were probably
part of the stores of a Spanish ship he had fought with. The potatoes were
given to Sir Walter Raleigh, and were cultivated at both his estates in
Ireland and later on to Virginia.
Potato cultivation spread to the Low Countries and Switzerland. With its
introduction to Germany in the 1620, the nutritional properties of the potato
were finally acknowledged. Frederick the Great, the Prussian ruler,
ordered his people to plant and eat them as a deterrent to famine, a
common and recurrent problem of that period. The people’s fear of
>
<
poisoning led him to enforce, his orders by threatening to cut off the nose
and ears of those who refused. Not surprisingly, this was effective and by
the time of the Seven Years War (1756-1763), potatoes were a basic part
of the Prussian diet.4
A similar story occurred in France. A young French agriculturist and chemist,
Antoine Augustin Parmentier, made it his mission to popularize the
potato after his experience as prisoner of war in Prussia. With some clever
marketing to King Louis XVI and Marie Antoinette, and subtle scheming to
convert the thinking of the populace, Parmentier achieved his goals. Potato
dishes were created in great variety and the potato became a delicacy
enjoyed by the nobility. The potato quickly took the place of other crops
as a food staple because it was a more reliable crop than wheat, which
suffered as a food crop when the damp climates of Europe prevented

4 http://v.>ww. lattra. dac. uga. edu/potato/history. htm


3
proper ripening. Potatoes furthered both an agrarian revolution already
underway in the early 17th century and populations increase in Europe
in the 17th and 18th century. As more and more farmers were drawn from
subsistence farming into profit-driven economies. The agrarian revolution,
stimulated by the potato, was an integral stimulus to the Industrial
Revolution.
European immigrants introduced potatoes to North America several times
throughout the 1600s, but they were not widely grown for almost a century.
Not until 1719, when Irish immigrants brought the potato to London and
New Hampshire where the potatoes were grown on a large seals. Again,
potatoes were slow to gain popularity. Even when they became the second
largest food crop in America, they were still used primarily as animal
fodder.
>
*

Ironically, the dependable potato, which had saved so many lives and helped
to further significant population increase throughout Europe, was responsible
for one of the most horrifying famines of the last 200 years. Introduced into
Ireland in the mid-1700, the potato proved to be an ideal crop for its environment.
Though the island gets an average 60 inches of precipitation each year, it is
mostly in the form of soft mist showers which both keeps the air cool and
the soil moist.
By the 1800s, Irish peasants were eating a daily average of 10 poiatoes per
person. The potatoes supplied about 80% of the calories in their diet. The
peasants used potato fodder to feed their animals, animaLs, which
provided milk, meat and eggs to supplement the peasants’ diet. This
dependence on one food crop was dangerous, but no other crop had ever
proved to be as reliable.
In the 1840s, disaster struck. Three successive years of late blight (the microscopic
fungus Phytpphthora infestans) and heavy rains rotted the potato crops in the
ground. Without potatoes, both the peasants and animals went hungry and

4
when the animals died for lack of food; milk, meat and eggs were no longer
available. More than one million of Ireland’s 8 million inhabitants died of
starvation; almost 2 million emigrated. The population of Ireland was
reduced by almost one-fourth (and has never regained its former numbers
to this day)*5. * *
We know now that genetic diversity might have mitigated this disaster but
this was not recognized at the time. Late blight and famine were not
isolated to Ireland; the European continent was subjected to the same wet
and cold weather, and had the same poor crops. The new field of frtant
pathology was stimulated by these disasters. The German botanist Heinrich
Anton de Bary published his findings on the complete life cycle of
Phytophthora infestans in 1861. This was one of the first times that a
fungus was identified as the cause of a plant disease. During the same
period, people discovered several ways to control the disease, using lime
in combination with either sulfur or copper sulfate (a Bordeaux mixture).6
Today, scientists are constantly developing and studying new and different
varieties to prevent a disaster like this from happening again, especially in
Third World countries where the potato is, or could be, an important staple.
At the same time potatoes soared in popularity as a food staple in Europe,
their popularity soared in the U-S. Known as the “Irish potato”, potatoes
were soon grown in every state in the Union.
Seeking to improve the “Irish potato”, the self-taught and brilliant American
horticulturist Luther Burbank took the first step. Growing twenty-three
seedlings from an Early Rose parent, he discovered that one seedling produced
two to three times more tubers of better size than any other potato variety
he had yet grown. After testing this new variety, Burbank marketed the
seedling he called the Burbank to the West Coast states in the late 1800’s.

s http://www.fal.de/bgrc-e/hstorg-e.html
6 Douches, D.S., Jastrzebski, K. (1993), Potato, Solatium tuberosum L. In “Genetic Improvement
of Vegetable Crops”, (ed. G. Kalloo, B.Q, Bergh), Pergamon Press, Oxford, U.K., pp. 605-644
5
Cultivation of the Burbank spread throughout the Western States. Within a
few short years, a mutation of the Burbank was discovered in Colorado,
which appeared to be more disease-resistant. The mutation had rough,
reticulated skin and was named the Burbank Russet. The state of Idaho
made it famous.
Idaho has a perfect environment for growing potatoes, especially the Russet.
Its hot days, cool nights and high-altitude closely resembles the potato’s original
growing environment. Because Idaho’s fields are irrigated, the potato p Pants
requirement for high soil moisture content can be met and Idaho’s volcanic soil
mimics that of the Andes; the light ash which is the third growing requirement
of the potato.
Though the Russet’s growing requirements were a perfect match with
Idaho’s climate and soil, it took a few years for Idaho farmers to make the
discovery. In the late 1800s, the most commonly grown potato varieties in
Idaho were those, which were popular in eastern United States. But Idaho’s
soil and climate were not optimum for growing eastern varieties. These
varieties were susceptible to scab and thus the harvest quality began to decline.
The subsequent soil infection resulted in a search for a replacement potato.
By the early 1900s, the Russet Burbank began appearing throughout Idaho.
It seemed to be more resistant to scab as well as to other diseases. But
growing a quality Russet was a bit more complicated than that, as Idaho
farmers soon discovered.
The Russet was much more particular in its plant spacing and water
requirements. Much experimentation, study and skill was required to grow
a perfectly formed, smooth, russet tuber. Tubers will become knobby and
misshapen with too much or too little water, or if the plants are spaced too
near together or too far apart. The farmers in Idaho were willing to work
together to share the knowledge they had and, for several years, harvests
of quality Russet Burbanks improved. Idaho potato growers began establishing

6
a reputation for quality Russets all across the United States. Then, once
again, harvest quality began to decline.
Joe Marshall, a potato farmer in Ashton, Idaho; soon realized what the
new problem was. At that time, farmers seeded their new fields using
the poor-quality cull potatoes left in the fields. Marshall realized that
this practice was responsible for decreased potato quality, poor
harvests, and spread of disease. He established the certified (disease-free)
seed program used in Idaho in which farmers use high-quality seed potatoes
for planting instead of cull potatoes. Production took a giant leap forward.
Today, Idaho’s reputation as the leading producer of quality potatoes has
been established. The Idaho potato sets the standard for the industry.7

7 www. css. orst. edu/po/atoes/poilinks.html


7
1.2 Trends of Potato Production

Potato production in developing countries entered a new, rapidly expanding


phase in the 1990s. Output surpassed 100 million tonnes by mid-decade, up
from less than 30 million tonnes in the early 1960s. For the last ten years,
potato production has increased at an annual average rate of 4.5% and area
planted at 2.4%. More remarkable still is that as potato output continues to
expand, the growth rate for area planted and production continued to accelerate.
As a result, the growth rate in potato production has nearly doubled over
the last twenty years. Confounding many commodity projection specialists,
growth rates for area planted have also accelerated.
Potato growth rates have not only been increasing, but they have exceeded
the growth rates for many other major food commodities in developing
countries in recent years. As growth in production for maize, wheat,
and rice slowed considerably in the last decade, potato output surged
ahead, thereby increasing potato’s relative importance, particularly in
Asia.
The potato production worldwide stands at 293 million tonnes and covers
more than 18 million hectares.8 With the break-up of the former Soviet
Union, China is now the world’s largest potato producer. India ranks
number four. Although potato production in Europe has fallen since the
early 1960s, this decline has been more than offset by the growth in Asia,
Africa and Latin America, thereby explaining the rise in global potato
tonnage.9

8 According to the latest data available through FAOSTAT, September 2001


9 Scott, G., M. W. Rosegrant, and C. Ringler. (2000) “Roots and tubers for the 21s' century: Trends,
projections, and policy options for developing countries”. Food, Agriculture, and the
Environment Discussion Paper 31. A co-publication of the International Food Policy
Research Institute (IFPRI) and the International Potato Center (CIP). Washington, D.C.
8
i

These prolonged and increasingly more pronounced divergent production


trends in Europe versus developing countries reflect fundamental shifts
underway in the global potato economy. In the last four years alone,
the share of worldwide potato production produced in developing countries
rose from 31% to 36%. This latest development merely accelerates the secular
shift in the location of production underway since the early 1960s. In doing so,
it reaffirms the increasing importance of potatoes as a source of food,
employment, and income in Asia, Africa and Latin America.
Regional Production Trends:
Asia- Growth in potato production in Asia in the 1990s has been
spectacular, averaging 5.1% from 1985-87 to 1995-97. This represents a
20% higher rate than that for the entire period 1961-63 to 1995-97,
suggesting that the pace of output increases has already accelerated.10
Several countries in fact have witnessed remarkable acceleration in recent
years. These include China with a 6.2% average annual rate of growth in
potato production over the last 10 years; Indonesia 10.6%; Nepal 8.8%.
India and Pakistan saw their growth rates decline but they were still
impressive at 4.6% and 6.0%, respectively.
With access to irrigation, chemical inputs such as fertilizers, continued
expansion in post-harvest infrastructure in the form of roads, and cold
storage facilities (in India), producers continue to find potatoes an extremely
attractive crop to grow. Strong demand both in the countryside and in
rapidly growing urban areas continues to stimulate increases in'area
planted. China witnessed a growth rate in area planted of 3.3%, Indonesia
7.1%, Nepal 4.1% over the period 1985-87 to 1995-97. Productivity
increases also accelerated lately to an average annual rate of 2.8%, up
from 1.6% for the entire period.

10 Adiyoga, W., R. Suhermcm, A. Asgar, and Irfansyah.(1999) “Potatoes in West Java: A rapid
approval of production, marketing, processing, and consumer preferences” International Potato
Cente’ (CIP), Lima, Peru. 39 p.
9
Africa- Egypt, South Africa, Algeria, and Morocco produce more than
80% of all the potatoes in the region. Growth rates in production have
been strong for each of these countries, with that for Egypt at over 5% per
annum since 1961-63. Expanding access to irrigation has been a major
factor facilitating this growth in output and high average yields (14-28t/
ha). Rising incomes, tourism, and, for North Africa producers, a lucrative
winter export market have been added catalysts.11
Latin America and the Caribbean- The potato production continued
•to expand over the last three decades at an annual rate of 2.2%. In recent
years, growth in area planted has rebounded particularly in Ecuador 3.0%,
Peru 2.0%, and Brazil 1.0%. As a result, output has risen sharply in these
same countries viz. Peru 3.7%, Brazil 2.8%, and Ecuador 2.0%. However, the
expansion of potatoes to less favored areas slowed the rate of improvement
in yields. Growth rates in potato production in Mexico have been well
over 3.0% throughout both periods with the most recent growth rate for
yields 4.1% among the highest for all developing countries.52
Potato in Global Diets
Potato possesses some distinct advantages over other cash crops. Its tuber
contains nutritional value, which substantially contributes towards food
and nutritional security to a large population. It also ensures the food security
because it is one of the most productive edible crops known to mankind and it
also produces highest dry matter content per unit area and unit time. Secondly,
it provides high quality edible protein per unit area. The biological value of
potato protein is very high and potato contains sufficient quantity of
vitamin C and considerable amount of vitamin of B group. A single
medium-sized potato contains about half the daily adult requirement of

11 Scott, G.J. (1988),“Potatoes in central Africa: A study of Burundi, Rwanda


and Zaire”,Published by CIPp.159
n Fuglie, K.O. (1994), “The demand for potatoes in Tunisia: Are they a cereal substitute?”,
European Review of Agricultural Economics 21:pp 277-286.
10
vitamin C. Other staples such as rice and wheat have none. Potato is very
low in fat, with just 5 percent of the fat content of wheat, and one-fourth
the calories of bread. A boiled potato has more protein than maize, and
nearly twice the calcium.
Potato can be cooked in many ways. It can be boiled, fried, roasted, toasted
>
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baked or steamed. Potato can be processed into flakes, cubes, granules,


chips, french-fries, pancakes etc. They are good for breakfast, lunch and
dinner.13 Potato contains about 80 percent water and 20 percent dry matter.
A major portion of dry matter is starch. Carbohydrates consisting of starch
and sugar constitute 16 percent and the fat content is very low as it is
merely 0.1 percent. In addition, potato contains fiber, vitamins and
glycoalkaloids. It is a wholesome and nutritive food. A boiled potato
provides about 69 k calories per 100 gm. Consumed.14, when compared to
other staples. Processed products of potato have high-protein and high
biological value. It is much higher than cereals and higher than even proteins
of animal origin like milk, beef etc. The biological value of mixture of egg
and potato is higher than egg alone. Potato protein has a better-balanced
amino acid content and high lysine content. On fresh weight basis, the fat
content of potato is negligible compared to other cereals. They are known
to contain 30 mg. Or more of citric acid per 100 gm. of tubers while cereals
lack in vitamin C. Potato is also an important source of thiamin, niacin
and pyridoxine and its derivatives.
In developed countries a large proportion of potato crop is consumed in
the processed form. India is also realizing the demand for processed food
with the increasing urbanization and changes in pattern of employment as
the women are also coming forward to join the employments. However, in
our country the unorganized sector is mainly engaged in such production,
which are producing various kinds of dehydrated and extruded potato
13 The Land Our, Book of International Recipes.
N The Hindu Survey of Indian Agriculture, 1999
11
products using traditional as well as modern method of processing. States
like Maharashtra and Gujrat are using dehydration method of potato
preservation for a long period of time.
Consumption in developing countries also increased from 9 kg/capita in
1961-63 to 14 kg/capita in 1995-97.15 These averages are still but a
fraction of per capita consumption levels of 86 kg/yr in Europe or 63 kg/
yr in North America, suggesting that ample room exists for continued
consumption increase. Recent statistics suggest that this trend is
already underway in parts of the developing world.
In Asia, per capita potato consumption jumped from 12 kg/capita in 1991-
92 to 14 kg/capita in 1994-96— a 16% increase in per capita terms over
the last three years. In Africa, annual average consumption remained stable
over the same period at 8 leg/ person as continued population growth
absorbed all of the increase in aggregate production. For Latin America, per
capita consumption for the region as a whole rose by nearly 15% in recent
years from 21 kg/year to 24 kg/year. Moreover, consumption increase in
certain countries also merit mention, in particular, in Colombia, from 47
kg/yr in 1991-92 to 56 kg/yr in 1994-96; and in Peru, from 42 kg/yr in
1991-92 to 63 kg/yr in 1994-96, recovering sharply from the earlier
downward trend in utilization.16
Globalization and Potatoes
Many developing countries have recently become much more integrated
into the international potato trade. This phenomenon is partly the result of
the worldwide trend toward lower tariffs and non-tariff barriers and the
emergence of regional trading blocks. Unfortunately, the volume and value
of such trade is not always readily apparent because published trade figures
frequently do not include data on processed potato products (e.g., frozen
french fries, chips, starch). Nevertheless, recent studies suggest that many
" According to FAOSTAT, June 1998.
16 http://www.potatonews. com
12
countries will need to accelerate the development and diffusion of yield-
increasing technology if they want to remain competitive in the emerging
global market for potatoes in the years ahead.
Potatoes and the Environment
Potato production in some developing countries involves the use of large
quantities of chemical pesticides. With the advent of new strains of
late blight, pressure to sustain food production and preserve the
environment is increasing in noteworthy fashion. Efforts are well
underway to meet this challenge by developing not only late blight
resistant varieties but also systems of integrated disease management that
put traditional farmers’ practices to control potato diseases to optimal use.

13
1.3 International Scenario

Potato is one of the most important food crops in the world. In terms of
production, it ranks after wheat, maize and rice. Potato production accounts
for nearly 50 per cent of total output of 628 million tonnes of all root and
tuber crops. Potato is produced in 137 countries the world over. But the
CI.S., China and Poland occupy the first three places in terms of area and
production representing about 60 percent of world potato area and about
of world potato production. Besides CIS, China and Poland, The United
States of America, India and Spain are also the leading potato producing
countries of the world- Over one billion people consume potato worldwide,
half of them from the developing countries.17
Potato is mainly a crop of the developed world. The developed countries
share in world area, and production is estimated to be 57.8 per cent and
66.2 per cent, respectively with the yield level of 19.4 t/ha. According to
the FAQ, India ranked fourth in area and production of potato in 1998.
The p cr hectare productivity of potato in India is 19t/ha, being much higher
than the world average of 16.5t/ha.18
Washington State is known as “Potato Country of U.S.A. “The climatic
conditions, rich volcanic soil, abundant water and long growing season
results in eastern Washington state producing the highest per acre yields
of potatoes in the world. Though the number of commercial growers is
less than 425, together they plant more than 100,000 acres annually,
harvesting up to 540 cwt per acre, twice as much as the average yield in
the United States. Washington State produces 18% of all U.S. potatoes.
The Washington State Potato Commission finances one of the largest, most
comprehensive, potato research programs in the United States. Scientific

17 http:// www.dpw.wageningen_ur.nl/eapr/links.htinl
,s Khatana, V.S., S.G. Ilangantileke, M.D. Upacihya, and G.J. Scott.(1998), “History of potato
storage in India with special reference to farmers’ practices”, Asian Agri-History (India) 2
(3): pp. 195-212.
14
research and study is done in conjunction with Washington State University.
To date, the total research investment has been well over $20,000,000.
Widespread potato production in eastern Washington is a relatively recent
phenomenon. It was not possible earlier in the 1900 because of a lack of
sufficient irrigation. The first step to resolve this was the one million-acre
Columbia Basin Irrigation Project. Its goal was to provide cheap and dependable
hydroelectric power and a constant supply of irrigation water to growers. Though
the Grand Coulee Dam on the Columbia River was completed in 1941, irrigators
had to wait until 1949 and 1950 for enough water to irrigate their fields. Outside
the project, individual growers have developed another one-half million acres
of well-irrigated land.
In 1982, to better address the geographic aspects of shipping from a far
western location, Washington packers formed an association to negotiate more
favorable freight rates with carriers. Better rail rates were also gained. Today,
Washington potatoes are shipped to all parts of the United States and exported
to the world marketplace.19
The Columbia Basin Project development is only half-complete. A half-million
acres of rich volcanic loam is still available for development ensuring that
Washington state will continue to be known as “Potato Country of U.S.A.”

Scott, G-, R. Best, M. Rosegrant, and M. Bokanga.(2000), “Roots and tubers in the globalfood
system: A vision statement to the year 2020” including Annex. Report of the Committee on
Inter-Centre Root and Tuber Crops Research (CICRTCR) in the CGIAR. A co-publication of
the Centro Internacional de Agriculture Tropical (ClAT): International Food Policy Research
Institute (IFPRI), International Institute for Tropical Agriculture (IITA), International Plant
Genetic Resources Institute (IPGRI) and the International Potato Center (CIP). CIP, Lima,
Peru. 117p.
15
1.4 National Scenario

Potato was properly introduced in India in early 17th Century. Its cultivation
however, started in late 19th Century. During the last 40 years, its area,
production, yield and per capita consumption have witnessed manifold increase.
Apart from cash returns to the farmers, it has not only opened new avenues
for food but also for the marketing of agro-processing and storage industries.
Though potato shares a very small (less than 1%) area for its production in
the total cultivated area of the country as compared to rice (29%), wheat
(15%), pulses (16%) and oilseeds (11%), yet the importance of potato as a
food crop is high in view of its versatility in production, consumption and
marketing processes throughout the country.20
The agriculture economy in the country is in the doldrums and the farmers
are in the grip of a crisis. One of the perceived threats emanates from the
ongoing process of liberalization of agricultural trade by way of removal of
quantitative restrictions (Qrs) and implementation of the tariff rates regime
under the World Trade Organization (WTO). Under the Uruguay Round,
agricultural tariffs have generally been bound at 100 per cent for primary
products, 150 per cent for processed products and 300 per cent for edible oil.
At present, the bound rates of duty in respect of several agricultural
commodities are at low levels. Potato is among these commodities with
low level of 35 per cent of duties.
In this backdrop it is feared that imports of the agricultural items with low
levels of bound duties could increase in the days to come, thereby posing a
threat of the food and livelihood security of the Indian farming community in
particular with concomitant repercussions on the people at large. It is thus
very opportune of examine critically the competitiveness of Indian potato for
exports under the liberalized regime.
In India the area allocated in 1949-50 was 0.234 million ha. while the
production was 1.54 million tonne. The productivity was 6.59 tonne per ha.
which now in current scenario has escalated to 1.21 million ha. in area, 22.14
million tonnes in production and 18.28 tonnes per ha. in productivity. The
Indo-Gangetic region viz. Punjab, Haryana, Uttar Pradesh, Bihar and West
»
Bengal are regarded as the potato bowl of the country. It accounts fof 78
20 Dahiya, P.S- and H.C. Sharma.(1994), “Potato marketing in India: Status, issues and outlook”
Published by CIP. 27pp.17-19
16
percent of the area and over 87 percent of production.
Table 1.4.1: Illustrates the figures for production and yield of potato
on national basis from the year 1990-91 to 2000-01
All-India Area, Production and Yield of
Potato From 1990-91 to 2000-01
Area - (Million Hectares)
Production - (MiilionTonnes)
Yield - (Tonnes/Hectare)
Year Area Production Yield
1990-91 0.94 15.21 16.25
1991-92 1.03 16.39 15.9
1992-93 1.05 15.23 14.45
1993-94 1.05 17.39 16.61
1994-95 1.07 17.4 16.27
1995-96 1.11 18.84 16.99
1996-97 1.25 24.22 19.39
1997-98 1.21 17.65 14.63
1998-99 1.32 23.61 17.88
1999-2k 1.34 24.71 18.44
2000-01 1.21 22.14 18.28
Source: www.nrilinks.com

Fig: 1

30
25
20
15
10
5
0

91 92 93 94 95 96 97 98 99 2000 01

■ Area (MillionHectares) ■ Production (MilionTonnes) o Yield (Tonnes/Hectare)


17
Potato Export Patterns
Export of an agricultural commodity is determined by four factors i.e.
export surplus, quality production based on sanitary and phyto-sanitary
Standards, comparative economic advantage and infrastructure support
subject to the country’s export policy. The export and import of potato
mainly take place within European countries i.e. the Netherlands, Germany,
Belgium-Luxembourg, France, Italy; and five other countries i.e. Canada,
USA, Egypt, Turkey and Cyprus which account for 80 percent of potato
export trade. Only 2 to 3 percent of about 300 million tonnes of world potato
production is traded internationally. India’s share in world potato exports
has been quite insignificant and variable. It ranged from 0.04 to 0.44 per
cent of world potato exports during 1986 to 1999.22
Currently India produces about 23 million tonnes of potato. Potato has
excelled both rice and wheat in terms of growth rates. For rice these were;
area 0.63, production 2.84 and yield 2.26; for wheat area 1.50, production
4.54 and yield 2.99; and for potato area 3.34, production 5.76 and yield
2.34 per cent per annum during 1967-68 to 1998-99. It indicates that export
surplus from potato is available in the country.23
The potato export from India is directed to only six countries i.e. Sri Lanka,
Nepal, Mauritius, Singapore, UAE and sometimes to Japan. In 1998-99,
these six countries accounted for 91 per cent of 7,181 tonnes of potato
exported from the country. Sri Lanka alone had the major share of 68.9
percent in the total export.
As for seed potato export, the Netherlands dominates the world seed
potato export market. During 1998, it exported over 226 thousand tonnes
of seed potato to 78 countries. These were 33 European countries, 16
African, 17 Asian and 12 American countries. Even though India has a
22 (Have, M. (1992), “Economic analysis ofpeasant family farms: Agricultural intensification,
cost accounting and sharecropping in Andean peasant communities”, PIi.D. thesis. Department
of Economics, University of Illinois at Urbaita, Champaign, USA. 135 p.
23 www.indiabudget.nic.in/es 2001-02
18
well-established National Seed Production Programme since the mid-sixties,
our seed potato exports have been nominal and erratic over the past two
decades.
The Netherlands, the USA and Canada are the world leaders in the production
and export of processed potato products. In the USA over 60 per cent of
potato production is processed, while in India we have an installed capacity
to process only 0.3 per cent of our potato output in the organized sector.
Durirg 1990-91 to 1998-99, India exported about 1,000 to 5,958 tonnes of
processed potato products.24
Technical Excellence for Potato Export
Every country is concerned to ensure that the consumers are supplied with
food that is safe to eat. The sanitary and phytosanitary or SPS measures
are set by the WTO to ensure that strict health and safety regulations are
not being used as an excuse for protecting domestic producers. In this
perspective, utmost stress is laid on quality production for farm products
in these days of globalization of agriculture. For various reasons, false or
true, it is widely held that the farm produce coming from the developing
countries falls short of international quality standards. True to this view it
is believed in certain quarters that “even it is possible to export Indian
potato, there would have been no takers for the produce because the^ are
not of international quality”. Potato output in the country should be
adjudged on the touchstone of different quality parameters. In India,
most potatoes are grown in winter under short-day conditions and harvested
from January to March when their is no fresh harvest of potato in most parts
of northern hemisphere making it a strategic crop from export point of
view. The potato is cultivated in sandy or sandy loam soils in the country.
Such soil conditions result in good shape and luster to the tubers. Quality
production of this type is preferred for exports to those countries where
24 Scott, G. J., D. Wong, and M. Alvarez. 2000, “ Improving village-level processing in developing
countries: The case ofpotatoes”, Ecology of Food and Nutrition 30:pp. 145-163.
19
mechanized processing is preferred.
Technologically Indian potato is highly competitive in the world market
as the potato production is free from the prohibited diseases like wart,
black scab, ring rot., tuber moth and nematodes, which are the barometer
to phyto-sanitary standards. Some of our varieties have been released in
Sri Lanka, Bhutan, Bangladesh, etc. The Indian potato meet the quality
standards in terms of freedom from prohibited diseases, shape, size, taste,
skin c olour, flesh, dry matter content and so on.
Nitty - Gritty of Exports
According to Shipping Corporation of India Ltd (SCIL), presently
potatoes are exported through non-reefer containers. Due to the perishable
nature of the cargo, potato exports would be limited to countries where
transit time does not exceed more than nine days. It would not be feasible to
export potato to Japan and Europe in reefer containers. The SCIL believes
that this may not be commercially viable due to high freight rates of reefer
containers. Normally potato and onion are stuffed in a special container,
which accommodates approximately 12.5 tonnes of potato. The cargo is
packed in 50 kg gunny bags and one door of the container is kept open to ensure
sufficient ventilation. Sufficient sailings are available to Malaysia, Singapore,
>

Middle East and Sri Lanka, but limited sailings for East African countrie's.25
The transit time from Mumbai port to Sri Lanka is three days, followed by
Dubai four days, Malaysia eight days and Singapore and East Africa nine
days. Indicative freight rates per tonne are Rs 1,856 for Sri Lanka, Rs
1,886 for Dubai, Rs 2,263 for Singapore and Malaysia and Rs 5,656 for
Mauritius, Madagascar and Seychelles (East Africa). The terminal handling
charges are extra and are applicable both the load port and disport (importing
country).26

25 Crop information by http;//www.indiaagronet.com


26 Maldonado, L., J. Wright, and G. Scott. (1998), “Constraints to production and use of potato in
Asia.” American Journal of Potato Research. USA. 75:pp. 71-79

20
Policy Implications and Strategies
India’s agri-exports face certain constraints that arise from conflicting domestic
policies relating to production, storage, distribution, food security, pricing
concerns, etc. Unwillingness to decide on basic minimum quantities for export
makes Indian supply sources unreliable. Higher domestic prices in comparison to
international prices of products of bulk exports like sugar; wheat, rice etc. make
our exports commercially less competitive. Market intelligence and creating
awareness in international market about quality of products need to be strengthened
to boost agricultural exports.27 For sustained export promotion of potato and
related products, India has to devise suitable cash compensatory schemes
for non-competitive years, besides undertaking surveys of potential export
markets and strengthening of exports infrastructure in terms of cold storages,
indigenous storage systems and shipping facilities. The data-base on potato
exports, price, grade standards, phyto-sanitary standards, consumer preferences,
seed standards, etc need to be improved and strengthened. We should also
conduct a global survey, particularly in Asian and African countries, to
find out the potential markets for Indian potato, analyze the consumer
r
preferences and understand the dynamics of trade, particularly of our
competitors.
Export of seed potato should be targeted for Asian countries, particularly
the SAARC countries, where our potato need not be tested for adaptation.
Export-oriented marketing research should be taken up on priority.
India should hammer out a long-term policy of production of value-added
processed potato products and exports, which would not only fetch
handsome foreign exchange for the country but also, will increase the
employment opportunities in processing industries. The bound rates
for potato should be renegotiated under the current round of negotiations
under way in Geneva in order to control the imports and maintain our
competitive edge as well.

27 Economic Survey of India, 2000-2001


21
Excess Potato Production in Bengal
West Bengal this year is facing a glut in potato production as 65 lakh
tonnes of potato produced during 2000-01 crop season (October-March).
Though the crop area shrank by 2,000 hectares to 3.13 lakh hectares, potato
production during the period was better than expected and was short by
only one-lakh tonnes compared to the previous year. Experts say the shortfall
could have been higher, but improved productivity stemmed the fall.

So far, about 26, lakh tonnes of potato was held in cold storages at the
time. It may be recalled that the state has been witnessing excess production
for the past several years, which often forced farmers to sell the crop
below the remunerative price. Two years ago, potato prices crashed to Rs.
2-2.50 per kg, which was half its remunerative price. The price crash,
however, was averted last year with the state govt, taking initiative to
export some quantity of potato.

Currently, the potato price is ruling between Rs. 5-5.50 per kg in open
markets in the state. To keep the price stable at that level, the state government
has now taken initiative to transport the commodity in bulk to other states, as
reported by market sources.

22
1.5 State and District Scenario

Potato production has achieved a significant position in the national agrarian


economy. It accounts for nearly 2.2 percent share of total agricultural
income of the nation and 0.6 percent of the cropped area.
Potato is cultivated in 22 states out of 31 states and union territories of the
country.28
Uttar Pradesh is a leading state in potato production ranking first in both
area and production among different states of India. It allocates 32.94
percent of area and gives 42.7 percent of production in entire domestic
production. It is an important cash crop of the state and grown in all most
all districts of U.P. The total area under the potato crop was 399 thousand
ha. giving a total production of 8496 metric tonnes, with productivity of
212.95 q/ha. in year 2000-2001.29 The Kanpur region contributes highest
in area, production and productivity among all the region of U.P. being 80
thousand ha. area, 2209 metric tonnes production and 276.12 q/ha.
productivity.
In U.P. district, Farrukhabad occupies prestigious position, so far as, potato
production is concerned. The Farrukhabad allocates 11.40 percent of area
and gives 16.65 percent of production of the entire state. It has the largest
area and highest production of potato in the state. In 1970-71 the production
was 210.90 metric tonnes, which increased up to 1414.58 metric tonnes, in
1994-95 and it further increased to 1502.45 metric tonnes in the year 2000-01.
The statistics of production area shows an increase from 22.46 thousand hectare
to 58.42 thousand hectare and further 61.39 thousand hectare in the same
time span. The records of productivity show an increase in productivity
from 9.91 tonnes/ha. to 24.21 tonnes/ha to further 24.47 tonnes/ha. during

u Agriculture Statistics at a Glance 1998


2> Agriculture Statistics and crop Insurance; Krishi Bhawan, Publication No. 217, January,
2002
23

31 Indian Horticulture Data Base (NHB), 2002


the same period of time respectively,30
As per the information given by the Department of Horticulture, area under
vegetable crops in district Varanasi was 12048 ha. during year 1999-2000.
However, the area may even be higher. The cropping intensity of the
vegetables is expected to be 260-300 percent.
Among vegetables, potato enjoys about 48.18 percent of the total area under
cultivation in district Varanasi. The area under potato cultivation was standing
6401 hectare with a productivity of 170.59 q/hectare in year 1990-91 which
rose at 6812 hectares and 286.4 q/hectare in year 1995-96 and was ^93 8
hectare with 179.22 q/hectare in year 2000-01.31
These figures illustrate that the area under cultivation of potato crop
increased by 411 hectare with a sharp rise in productivity by 115.81 q/
hectare from the year 1990-91 to 1995-96 and then it decreased
significantly to 1874 hectare in area and 107.18 q/hectare in productivity from
the year 1995-96 to 2000-01.
Thus considering all the facts mentioned above it was thought to workout
the economics of its production and marketing which can suggest the
measures to minimize the post harvest losses. The study will be fruitful to
facilitate the trends of processing, marketing and a phased supply. It will also
be a torchbearer to tolerate the pressure of population and unpredicted
changes in climatic conditions to maintain the reasonable price level.
Table 1.5.1 depicts the area, production and yield of potato in the major
potato producing states for two consecutive years 1999-2000 and year
2000-2001.

30 UPCAR, 2002, Strategy for increasing crop productivity and production in different
agro-climatic zones of VP. P.50.
31 Indian Horticulture Data Base (NHB), 2002
24
Table 1.5.1
Area, Production and Yield of Potato During 1999-2000 and 2000-01 in R espect o f M ajor Potato Producing States
Area - ‘ 000 H ectares
Production - ‘000 Tonnes
Yield - Q/ H ectare
2000 - 2 0 0 1 1999 - 2 0 0 0
% of % of Cumulative Cumulative
% of % of
State , Area Total Area Production Total % of Total Yield % of Total
A rea Total Area Production Total Yield
Prod. Production Production
Prod.

XT

. M
o

ro
V)
r-
00
(N

VO
ON
tn

-
*—<

25
cn
rn
O
06
o

2
On
©

Uttar Pradesh 399.00 32.94 8496.90 38.37 212.95 447.70 33.41 40.91 40.91 225.80

West Bangal 299.70 24.74 7673.10 34.65 73.03 256.03 315.90 23.57 7482.30 30.28 71.18 236.86
in
oo
Bihar 148.10 12.23 1375.90 6.21 79.24 92.90 o 13.69 1717.90 6.95 78.13 93.62
in
vo
cn
oo
©

Punjab
oo
VO

59.40 4.90 1187.10 5.36 84.60 199.85 75.50 5.63 6.33 207.07

cn
©
oo
o
©
r-
o

CN

o
OO
ON
Madhya Pradesh 2.51 329.20 1.49 94.38 68.30 5.10 3.52 95.46 127.38

00

vo
cn

o ‘o
•n
00

in

Haryana 257.50 1.16 95.54 154.19 16.50 1.23 260.00. 1.05 96.51

Himachal Pradesh
o
ON

12.80 1.06 155.00 0.70 97.06 121.09 10.60 140.90 0.57 97.66 132.92
690
Orissa
990
8.30 85.90 0.39 98.35 103.49' 8.80 84.80 0.34 98.70 96.36
OO’OOI

00
.
CN
©
o
m
o

Others 54.30 364.80 1.65 100.00 45.20 3.37


<§>

o
q

CN
©

o
2

cn
o
©
o

Ail India
o
o
o
©

22142.70 182.80 1340.00 24713.20 100.00 18443.00


@ - Since Area/ Production is low, yield rate is not worked out.
Note: States have been arranged in descending order of percentage share of production during 2000-01.
Source: www.nrilinks.com/frame.asp
1.6 Potato in 21st Century

In the 1950s, potato consumption began to drop in India. It had risen steadily
for over one hundred years but began to drop off with the advent of convenience
foods and the mistaken idea that potatoes were fattening. Then food
researchers began to develop various kinds of processed potatoes. Techniques
such as dehydro-freezing (freeze-drying), explosion puffing, and using infrared
light to create a kind of seal on the tissue of the potato were developed. By the
late 1950s, consumption was on the rise again.
Recent collaborative research involving CIP has included a detailed analysis
of historical trends and future projections for potatoes in developing
countries. Estimated growth rates in potato production for the period 1993-2020
are 2.02% according to the baseline scenario-based more on past projections,
and 2.71% for the high demand and production scenario-based more on
historical trends. As these projections were done as part of a global model
for the world’s major food commodities, they also permit estimates of the
future value of production. These calculations show that the potato
will most likely maintain, if not increase, its relative economic
importance in the food basket for developing countries in the decades ahead.
The effective transfer of research results, technology, and capabilities to
partner countries is accomplished through training, information
dissemination, and collaborative research designed to assist potato research
institutes in reaching and maintaining their fullest potential.32

33 Douches, D.S., Jastrzebski, K. (2000), Potato, Solatium tuberosum L. In “Genetic Improvement of


Vegetable Crops”, (ed. G. Kalloo, B.O. Bergh), Pergamon Press, Oxford, U.K., pp. 605-644.
26

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