Potato prices to remain volatile on supply constraints

KOLKATA | CHANDIGARH: Potato prices have turned volatile across India due to a mismatch in demand and supply. While prices have come down in northern and western India, prices still remain firm in the eastern part due to crop delays.
Farmers in Punjab are getting Rs 250-300 per quintal for the Pukhraj and Jyoti potato varieties.

In the Jalandhar mandi, prices for a 50-kg packet were ruling at Rs 130-160 on Tuesday while in the retail market, it remained at around Rs 5-7 a kg. In the first week of December, prices were at Rs 600 per quintal. On the contrary, retail price of Jyoti potato is Rs 9-10 per kg in West Bengal while the Chandramukhi variety is commanding a price of Rs 12 per kg.

The Jalandhar Potato Growers Association president Raghubir Singh said that the sudden dip in prices was not expected. “Due to non-availability of railway rakes, traders were unable to send the crop to Guwhati and West Bengal. It ensured a glut like situation in the mandis and resulted in a steep fall in prices,” he said. In the previous year, traders from Punjab had sent more than 20 rakes of potato to the north-eastern states. This year, 12 rakes have been transported.

Government officials said that 20% of the crop has been harvested in Punjab. The prevailing cold weather conditions in northern states is a matter of concern for farmers and traders. “If frost-like situation prevails, the yield loss is expected,” said Mr Singh.

Prices continue to remain firm in West Bengal, the second-largest producer in the country. Potatoes that have been in cold storage are being used to meet the demand in the West Bengal market.

“The cold storage potato was supposed to be offloaded by December 15. But that didn’t happen due to procedural delay on part of the state government. Now the date has been extended by another 15 days and the cold storages are charging an additional Rs 15 per quintal for this period,” said Gautam Sinha, secretary of Greater Kolkata Potato and Onion Merchants’ Association.

At present, cold storages in the state are having an inventory 1.5 lakh-2 lakh tonne potatoes which is being offloaded in the market.

Retail consumers are getting these cold storage potatoes at a price of Rs 9-10 per kg. Potatoes from Punjab and Uttar Pradesh have arrived at the mandis of West Bengal.