Potato prices for future contracts surge at commexes
Prices of potato for future delivery surged at NCDEX and MCX on concerns that chilly cold in northern states may damage the crop.
By PTI |
NEW DELHI: Prices of potato for future delivery surged at NCDEX and MCX, the leading commodity bourses, on concerns that chilly cold in northern states especially in Uttar Pradesh, Haryana and Punjab may damage the crop.
Dense fog and chilly cold in major growing regions have already affected the crop in some areas, agri experts said, adding that the farmers fear they may not get a good price if there is any further dip in temperature, which can result in late blight disease destroying the entire potato crop in less than two weeks.
At 2.30 pm, the potato delivery of March went up by 2.60 per cent at Rs 610 per quintal, while April delivery saw surge of 2.80 per cent at Rs 612 per quintal.
At MCX counter, potato futures of March went marginally up by 0.34 per cent at Rs 563 per quintal and April contract jumped less than a per cent to Rs 562.10 per quintal.
Analysts said besides adverse weather conditions, higher demand for the commodity is also pushing up the prices at commexes.
"Although production estimates are pegged high this season, prices are not coming down due to a strong demand and concerns of crop loss," Karvy Comtrade analyst Chowda Reddy said.
He said traders are closely watching weather progress and any improvement in it may lead to some fall in prices.
"Till then, prices are expected to trade firm," he added. Potato output for 2007-08 is pegged at at 30 million tons, up by about 11 per cent from 27 million tons last year.
Potato is mainly a rabi crop with more than 95 per cent of the production coming from rabi sowing.
Dense fog and chilly cold in major growing regions have already affected the crop in some areas, agri experts said, adding that the farmers fear they may not get a good price if there is any further dip in temperature, which can result in late blight disease destroying the entire potato crop in less than two weeks.
At 2.30 pm, the potato delivery of March went up by 2.60 per cent at Rs 610 per quintal, while April delivery saw surge of 2.80 per cent at Rs 612 per quintal.
At MCX counter, potato futures of March went marginally up by 0.34 per cent at Rs 563 per quintal and April contract jumped less than a per cent to Rs 562.10 per quintal.
Analysts said besides adverse weather conditions, higher demand for the commodity is also pushing up the prices at commexes.
"Although production estimates are pegged high this season, prices are not coming down due to a strong demand and concerns of crop loss," Karvy Comtrade analyst Chowda Reddy said.
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He said traders are closely watching weather progress and any improvement in it may lead to some fall in prices.
"Till then, prices are expected to trade firm," he added. Potato output for 2007-08 is pegged at at 30 million tons, up by about 11 per cent from 27 million tons last year.
Potato is mainly a rabi crop with more than 95 per cent of the production coming from rabi sowing.
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