Ultimately this may just move the wastage somehwere else: people may get those for free instead of buying them, leading to waste in supermarkets/shops. Or they might take more than they need because it's free and end up throwing them away.

It seems that they acknowledge that they are doing thus because there is a supply glut so potatoes will go to waste in any case...

Ultimately this give away is a waste of efforts, too. Sometimes there is just nothing to be done...