New Delhi, Dec. 2 -- I could either buy a new car or use that money to plant potatoes," said Bhupesh Kajla, laughing. For the 40-year-old farmer from Meerut, Uttar Pradesh, the Kharif crop season turned out to be a damp squib. The premium basmati paddy he planted on 45 acres was damaged by excess rains, just ahead of harvest in October. Yields were lower by a fifth and wholesale prices were around what they were two years back.

"I just about managed to recover the cost of cultivation," Kajla said over phone. He is worried that the next winter crop of potato may be a washout, not because of inclement weather but due to plunging prices. Wholesale potato prices are hovering around Rs.600 for a 50-kg bag, just about enough to cover the cost ...