In the face of the West Bengal government’s continued restrictions on the sale of potatoes to other states, Odisha Food Supplies and Consumer Welfare Minister Krushna Chandra Patra on August 18 revealed plans to use railway instead of trucks to bring potatoes from Uttar Pradesh (UP). Although this plan seems to have been deferred for now after the West Bengal government on the same day announced lifting the restrictions for a week beginning August 21, the idea to use the railway to transport potatoes from UP highlights the efficient and affordable railway freight service that can be used for transportation of essential food commodities, especially in times of crisis.
Patra said he was discussing the issue with the Railway Ministry as the state government planned to use two goods trains to transport potatoes from UP. It’s surprising why the Odisha government needed to talk to the Railway Ministry instead of local railway authorities for such a routine job. But that’s a secondary issue. The important issue is why India does not use railways to transport agricultural products. More importantly, what happened to the Kisan Rail scheme that was envisioned to solve precisely this kind of problem and contribute to India’s food security plans?
The potato shortage in Odisha was essentially a supply chain and logistics issue. Both UP and West Bengal have enough stock to meet the country’s need for potatoes. But Odisha could not procure them from neighbouring West Bengal, as the latter tried to control potato prices by ensuring adequate supply to their local market. Odisha could get the supply from UP, but the high transportation cost would make the potatoes costlier. Also, there was a possibility of potatoes getting spoilt during the transit due to the rains.
The NDA government at the centre introduced the Kisan Rail scheme through the 2019-20 budget, and the first Kisan Rail chugged out in August 2020. It was envisioned to revolutionise the country’s transportation of perishable agricultural products such as fruits and vegetables. These trains were supposed to have refrigeration facilities to allow milk and dairy products to be safely transported. The Ministry of Food Processing Industries (MoFPI) offered a 50% freight subsidy during 2020-21 and 2021-22.
In a statement in Parliament on March 29, 2023, Railway Minister Ashwini Vaishnaw informed Parliament that from August 7, 2023, and March 1, 2023, Indian Railways operated 2,364 Kisan Rail services across 167 routes. While the MoFPI discontinued the subsidy from April 1, 2022, the railways provided a 45% subsidy from April 1, 2022, until March 1, 2023.
However, after March 30, 2023, there was no news about Kisan Rail, and it’s believed that the concerned ministries dropped this scheme due to a lack of interest shown by farmers and traders.
Those who used or analysed the Kisan Rail scheme believed using the railway to transport perishable agricultural commodities such as fruits and vegetables was impractical. A truck or pick-up van offers a farm-to-market transport solution. In the case of Railways, the farm produce must be taken to the yard first. After reaching the destination, the produce needs to be taken to the market. It involves several rounds of handling, which damages the farm commodities.
However, experts believe that the government did not do enough groundwork before launching the Kisan Rail service. It did not consult and collaborate with industry stakeholders to ensure a viable business volume. Whatever the reason, shelving the Kisan Rail scheme was a regressive move. The Odisha potato crisis is a glaring example of a missed opportunity.
