June 28: The potato price at the Phuentsholing Food Corporation of Bhutan (FCB) auction yard is set to set a record high. The price of potatoes is expected to reach a record Nu. 25 a kilogram this year according to the predictions made by the FCB.

Most of the potatoes are bought by Indian merchants. This year the production in the neighbouring Indian states is poor. This has pushed up the demand and as a result the price.

Potatoes usually fetch eight to Nu. 9 a kilogram, but this year the starting price at the auction price is almost double at Nu. 16 a kilogram. The price this year has not fallen below Nu. 12.

The auction begins by June and truck loads of potatoes from places like Paro and Chapcha have already started arriving at the Phuentsholing FCB auction yard.

The prospects this year looks good but the auction yard management is worried because it does not have adequate revolving fund. The management lends money from the revolving fund to buyers. Without adequate funds, the buyers will not be able to buy as much as they want. They also mobilize their own funds but it takes time. This causes stockpiling, delay in payments, and consequently brings down the price.

The managing director of FCB, Kunzang Namgyel said the management sought help from the government. But the answer was negative.

The FCB initially came up with the revolving fund of Nu. two million in 1993. It was increased over the years to around 13 million by 2003.

Then it had to be discontinued. He said with the amount increasing, the corporation could not longer maintain the fund. Meanwhile farmers at the auction yard are pinning their hopes on the FCB. But it looks like there is little FCB can do for them with no support of any kind at least for this season.