Wholesale potato prices in West Bengal softened by nearly 15 per cent this week, due to arrival of new crop.
Though prices are still ruling nearly 20 per cent higher than the last season, trading lobby is apprehensive of a further meltdown of prices in February due to bright production outlook.
Wholesale price of the tuber was ruling around Rs 600-650 a quintal on January 12 against Rs 700-750 in the first week of January.
prices firm
According to Patit Paban De, Member, West Bengal Cold Storage Association, the early varieties of potatoes – Pokhraj and S6 – have started coming into the market.
Harvesting of potatoes which begins around end-December, gains steam by the end of January or early February and is complete by March 15.
“The arrival of new crop usually brings down prices in the market. However, when compared to last year, prices are ruling firm this season,” De told Business Line .
The wholesale price of the tuber was hovering around Rs 500-550 around the second week of January in 2012, he said.
Input costs
According to potato farmers, cost of cultivation, which includes fertiliser, seeds and labour costs, have gone up by nearly 50 per cent.
The average cost of growing potato on an acre of land, which was close to Rs 31,000-33,000 last year, has increased to Rs 46,000-47,000 an acre this year.
A farmer can typically grow close to 250 quintals of potatoes on one acre of land, sources said.
Production
Though prices have remained firm so far, however, it would be difficult to predict how the prices would behave in the peak harvesting season beginning end January to February, De said.
Potato sowing in the State is 4-5 per cent higher this year. Though it is difficult to estimate the exact production of the crop, however, initial estimates suggest that the State might end up producing 20 per cent higher crop this season against 85 lakh tonne in 2011-12.
“Going by the consumption pattern across the country, if the production exceeds 90 lakh tonne then it will be difficult to hold the market and there could be a tendency for prices to crash,” De pointed out.
However, the prices will depend on the quantum of production in other States and demand situation, he added.