NAFED to invite expression of interest for import of 25K tonnes potatoes

NEW DELHI: In order to boost supply and contain rising potato prices, co-operative major NAFED today said it will invite expression of interest (EoI) this weekend from global suppliers for supplying 25,000 tonnes of potatoes.

Potato prices have shown a rising trend during the recent weeks and the commodity is being retailed at Rs 35-40 per kg in the National Capital.

The government had last week directed NAFED and the Small Farmers' Agri-Business Consortium (SFAC) to import potatoes to improve the domestic supply in the coming months.

"We are inviting the expression of interest (EoI) from global suppliers for import of 25,000 tonnes potatoes," National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) Managing Director R Rajagopalan told PTI.

NAFED, which is importing potatoes for the first time, would like to see the response from suppliers before floating a full-fledged tender for import, he said.

"We have always imported onions and never done potatoes. This time, we are trying to import potatoes. First we are inviting EoI to see responses from suppliers. Unless we know how many suppliers will come forward, there is no point going ahead with tenders," Rajagopalan said.

An advisement seeking EoI from global suppliers for potato import has been cleared, "It will come out this weekend, either tomorrow or Sunday," he said.

The quantity has been fixed at 25,000 tonnes. Suppliers will require to supply the quality potatoes from any country of origin, he added.

"I don't' think we need to be particular about the country of origin. If we are able to get potatoes in right quality specification even if it comes from China, then there should be no problem," the official said.

In June, the government had imposed a minimum export price (MEP) of USD 450 per tonne on potatoes to increase domestic availability and cool prices.

At present, there is 30 per cent import duty on potatoes. The stock of stored potatoes is getting exhausted and therefore the government has decided to import to boost availability till the new crop arrives from January-end.

India produced 44.3 million tonnes of potatoes in 2013-14 crop year, down 2.3 per cent from the previous year.