Potato prices in West Bengal dipped by nearly Rs 50 a quintal last week on the back of improved supplies from cold storages coming into the market.

Wholesale price of the tuber (Jyoti variety) was ruling around Rs 850, down from Rs 900 in the first week of May.

Prices are likely to hover around current levels backed by a steady demand for Bengal potatoes in other states, said Sukumar Samanta, General Secretary, Singur Ratanpur Aloo Byabasi Samiti.

Improved Supplies

According to Patit Paban De, member of West Bengal Cold Storage Association, more than half of the 400-odd cold storages in the State have started unloading their potatoes.

With the State government approving a rental hike of Rs 19 a quintal, cold storages started opening their outfits for unloading potatoes in the first week of May.

The present hike, which comes after almost three years, is still inadequate to make good for the 50 per cent rise in input costs, De said.

The 400-odd storage units in the State can hold up to 60 lakh tonnes of potatoes.

“Prices had shot up in the last week of April and early May on the back of a steady demand leading to depletion of stocks held with farmers,” De told Business Line .

Usually around this time of the year, farmers have a reasonable quantity of potatoes with them. However, this year, there was hardly any stock left.

This is despite a 12 per cent rise in potato production to 98 lakh tonnes this year.

West Bengal consumes around 50-55 lakh tonnes of potatoes produced; while nearly 40 per cent of the potatoes produced in Bengal find its way into other States.

Had the cold storages not started unloading, then prices could have risen further as the demand continues to be good, De pointed out.

“Starting next week, the other cold storages will also commence their unloading operations. This might exert some pressure on prices, however, we expect price to remain firm at these levels due to steady demand,” he said.

However, if for any reason, potato supply from Bengal to other States comes down, then prices might crash due to an excess production this year, he added.

shobha.roy@thehindu.co.in

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