India: Potato prices slump, massive stock arrivals

It is trading at Rs 3.75 a kg in the Rajkot mandi, Gujarat, and Rs 2.40 a kg in Dhupguri, West Bengal, against a cost of production at Rs 4.50-5 a kg across the country. In major consumption centres, i.e. near Mumbai and Delhi, however, the price remains Rs 5.8-7 a kg.Late-sown seedlings which had matured and were ready for the harvest got wet in the unseasonal rain early this month. Harvesting of this matured crop was delayed due to deep mud in fields. So, the crops were soaked in huge amounts of water."Normally, potato is stored in warehouses for release in the lean season. But, the produce currently arriving at mandis is not fit for storage. Therefore, farmers are selling at any price. If unseasonal rain happens during the harvesting period as seen in early March, such a price decline is expected," said R P Gupta, Director, National Horticultural Research and Development Foundation, a Nashik-based entity.In the Burdwan (Bengal) mandi, arrivals were estimated at 2,205 tonnes on Monday as against a mere 186 tonnes a day early this month. Experts believe harvesting in Bengal, one of India’s largest producers, will start a fortnight later than in Uttar Pradesh, another large state for potato output. In UP, potato prices have moved marginally up so far this month, as the price had earlier hit extremely low levels."Around 80 per cent of potato got harvested before the unseasonal rain started. Storage companies and warehouse keepers have already stored the required quantity for lean season sales. So, there will be no problem for availability during the off season. But, prices would continue to remain subdued for at least two to four weeks more, until arrivals of wet potato wanes," said Gupta.Experts do not expect much of crop damage due to March rain. The National Horticulture Board’s first advance estimate had forecast output at 42.77 million tonnes this year as compared to 41.56 mt last year.