A weak market and lower release from cold storages have led to declining potato prices in West Bengal — the second largest producer in the country. If demand does not pick up, then the prices of the root vegetable may crash.

Wholesale price of the average quality tuber (Jyoti variety) has now fallen to ₹19-20 per kg from ₹21-23 per kg a month ago. However, prices have remained fairly stable in Uttar Pradesh, the largest producer of the spud, at around ₹14-18 a kg as the stock has been making its way into neighbouring States due to relatively lower price.

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According to Patit Paban De, Member, West Bengal Cold Storage Association, prices have been gradually declining over the past one month despite a lower crop this year.

“Uttar Pradesh had higher crop this year. So their prices have been relatively lower and their potatoes have been taking over some of the market earlier served by West Bengal. If demand does not improve, then prices could crash towards the later part of this year,” De told BusinessLine.

Tapping West Bengal’s market

Punjab, Uttar Pradesh and Gujarat potatoes have been making inroads to markets which were typically catered by West Bengal such as Assam, Jharkhand, Odisha, Chattisgarh, among others.

The release from cold storage has been lower at around 52 per cent up to the festival season this year as against close to 58 per cent during the usual year.

West Bengal registered a near 23 per cent drop in production this year to around 85 lakh tonne, as against 110 lakh tonne in 2021. The State’s 400-odd cold storages have been loaded with around 61 lakh tonnes of potatoes, 87 per cent of the total capacity of 70 lakh tonnes of potatoes.

Prices in Uttar Pradesh to remain stable

According to Rajesh Goyal, President of Federation of Cold Storage Associations of India, notwithstanding bumper production, potato prices have remained stable in Uttar Pradesh over the last three months due to a steady demand from across the country.

“There have been untimely rains in Uttar Pradesh and Agra. So the early sowing of tuber has been slightly delayed. Typically sowing for the early variety tuber begins by end September or early October. This has been delayed this year due to rainfall so this is likely to keep prices steady,” Goyal said.

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