India likely to import potatoes from Bhutan

New Delhi: The government is likely to allow import of potatoes from Bhutan as it expects prices of the tuber to stay elevated in the near term on account of lower production, said a senior official, adding that it is exploring import from other destinations.

The government will allow traders to import small quantities of the staple soon, said the official, who did not wish to be identified.

Weather-related damages in key producing states of West Bengal and Uttar Pradesh hit production this year, fuelling the price increase.


Despite a supportive base effect from last year, food inflation soared to 9.4%, driven primarily by the persistent high prices of vegetables. Inflation in tomatoes, onions and potatoes together surged to 48.4%, led by onions and potatoes.

"Prices of potatoes are expected to be firm for the next few months," said an agricultural analyst, who did not wish to be identified, adding that the shortage of the tuber is likely to be felt as early as October unlike the general trend of November-December.

"Large farmers and traders are holding their stocks in anticipation of a price rise in the coming months," a trader said on condition of anonymity, adding that loading in cold storages also saw a decline this year.

Potato output is expected to be around 58.99 million tonnes this year, lower than about 60.14 million tonnes last year, according to the first advance estimate of the agriculture ministry.

Severe heatwaves in large parts of the country pushed prices of other green vegetables up, prompting consumers to shift to potatoes. India imported fresh or chilled potatoes worth $1.02 million in 2022-23. The country usually imports potatoes from neighbouring nations such as Bhutan and Nepal or from Brazil and Mozambique.

The Central Potato Research Institute has issued an advisory for potato farmers across the country, warning of a high risk of late blight disease, a fungal infection, in the crop due to changes in weather conditions.

Last year, the government has allowed imports of potatoes from Bhutan without any licence till June 2024. India is the second largest potato producer in the world, behind China, with an output of 55 million tonnes last year, while Ukraine and the US rank third and fourth in potato production.