Low prices may cut Rabi potato acreage by 15 to 20 per cent

AHMEDABAD | KOLKATA: Potato acreage in India is likely to drop by 15-20% in the new season. Farmers suffered last year due to a decline in prices following a higher production. According to an initial estimate, the losses could run into few thousand crores with Bengal farmers suffering the most.

In this backdrop, a further expansion in area could weaken the prices even as sowing has started across Uttar Pradesh, Bengal, Bihar and Punjab. But the industry expects a growth of 25% in processing varieties such as Chipsona, Atlantic and Lady Rosetta.
"Favourable weather during the growing season in major potato producing states during 2010-11 resulted in about 13% increase in production, from nearly 36 million tonne in 2009-10 to more than 40 million tonne in 2010-11.

This has put a downward pressure on prices during the marketing season 2010-11," said Dr Jagrup Singh Sidhu, head of economics and sociology department at Punjab Agriculture University's Agricultural Market Intelligence Centre. He said prices would be in the range of Rs 350-450 per quintal during December 2011 to March 2012 under normal weather conditions.

Gopal Mondol, a leading potato grower from West Bengal, said: "Potato farmers have suffered huge losses. A rough estimate indicates that losses run up to Rs 1,500 crore. Farmers had held potatoes as they thought there will be a huge demand from overseas markets. But that didn't happen. Now there is an oversupply situation which has pushed down prices. A decision has been taken to reduce the acreage this season."

"There should not be a major fall in the acreage as the farmer has a sowing cycle. A marginal 1-2% fall in acreage in the country will not make an impact," said Sachid Madan, director, Technico Agri Sciences, a subsidiary of cigarette-to-hotel major ITC.
In India, more than 80% of the crop is raised in the rabi season under assured irrigation during short winter days from October to March whereas kharif production takes place in Karnataka, Maharashtra, Himachal Pradesh, Jammu & Kashmir and Uttaranchal. Uttar Pradesh (32%) produces the highest quantity amounting to 11.51million tonne from 5.3 lakh hectare followed by West Bengal (25%), Bihar (17%), Punjab (6%) and Gujarat (5%).