Crop damage pushes potato prices up 25%

Potato prices have jumped by 25 per cent in a month due to crop damage and frequent hailstorms in major cultivating regions. The price stands at double of what it was in the same time last year.

The data compiled by the Nashik-based National Horticultural Research & Development Foundation showed the model potato at ~14 a kg in the benchmark Asansol wholesale mandi in West Bengal. Prices there had slumped to the season’s low of ~11.20 a kg on February 14 on increased arrivals of new season crop. Wholesale prices are expected to go up further to ~22, which means ~40 a kg in retail market.

Farmers reported massive damage in transit in addition to huge quantity of the potato left unharvested due to mud in the field.

“At least 30-40 per cent potato got damaged this year due to hailstorms, which pushed its prices up in both wholesale and retail markets. With the harvesting of the current season crop completed, arrivals have started declining steadily. Further increase in potato price is likely,” said Pravir Kumar Bera, managing partner, Agrive Exports & Imports, a Kolkata-based potato wholesaler and exporter.

West Bengal contributes nearly 25 per cent (11-11.5 million tonnes) of India’s overall potato output and stands second after Uttar Pradesh (nearly 30 per cent).

Daily arrivals have declined in the Asansol mandi to 36 tonnes now, as against 50 tonnes about a month ago. The same case of price and arrivals prevails for potato across all major mandis in India.

Meanwhile, farmers are delaying release of their stock in anticipation of further price rise.

In Indore, where potato harvesting is expected to continue for another two-three weeks, farmers are storing the produce in their godowns amid expectation of further increase in its prices.

“Quantity of arrivals is low today because farmers anticipate further price rise. While a huge quantity of potato is coming into cold storages, farmers and stockists want to delay its sale for higher realisation later,” said Hasmukh Jain Gandhi, president, Madhya Pradesh Cold Storage Association.

Bera expects potato prices to jump to ~22-25 a kg in wholesale mandis in the next few weeks, which will translate to ~40 a kg for consumers.