Potato prices across the key growing regions of Uttar Pradesh and West Bengal has firmed up in the last one-to-two months on the back of erratic weather conditions impacting release of the tuber and higher prices of green vegetables. However, on a YoY basis, prices are still ruling lower as compared to last year due to higher production this year.

Potato prices in West Bengal has firmed up by nearly ₹ two three a kg in the last two months with wholesale price of the tuber (Jyoti variety) hovering at around ₹16-17 a kg at present, as against close to ₹13-14 a kg in late April. Prices in the retail market are ruling at around ₹26-27 a kg. 

According to trade sources, though the production has been higher this year, release of potatoes has been slightly staggered in markets like Uttar Pradesh due to heavy rains. This has helped strengthen the demand for Bengal potatoes in the neighbouring states including Bihar, Assam and also some southern states. Prices are likely to remain firm at current levels, sources said.

It is to be noted that though prices started on a firm note with the tuber fetching around ₹19-20 a kg at the beginning of the season it started to witness a significant drop later.

Wholesale price of the tuber in Uttar Pradesh is ruling at around ₹11-14 a kg, which is anywhere between three-to-five per cent lower as compared to a normal year.

“Potato prices are on the upper side as prices of green vegetables have gone up significantly. Farmers have been coming to cold storage to offload stock as they are getting better prices,” Rajesh Goyal, President of Federation of Cold Storage Associations of India told BusinessLine.

Higher crop

West Bengal, which is the second largest producer of potatoes after Uttar Pradesh, has witnessed a higher production this year. Though the official estimates of the crop size in the State is expected to be close to 130-140 lakh tonne this year, industry expects the crop to be slightly lower at around 100-110 lakh tonne. This is almost 29 per cent higher than last year’s production of around 85 lakh tonne and nearly 16 per cent higher than the State’s average production of around 95-100 lakh tonne a year.

UP is likely to have a production of close to 240 lakh tonne as per official estimates.

“The prices had gone down to ₹14 a kg earlier but now they have been firming up. The weather conditions have been quite erratic with some places experiencing heavy downpour and some places like West Bengal hardly having any rains. This has impacted the release of potatoes from cold storage.

Also, vegetable prices have gone through the roof and this has helped firm up potato prices to some extent. We expect prices to be stable at current levels,” Patit Paban De, member and past president of West Bengal Cold Storage Association said.

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