India: Potato prices high due to short supply

Traders say that there is shortfall of around 30% and this is due to scant supply from West Bengal, the second largest producer of the staple. The city receives potatoes, mainly from West Bengal and Gujarat apart from Uttar Pradesh. However, the supply from West Bengal has been poor thanks to unseasonal rains.

"Poor crops in Jharkhand, Odissa, and Bihar added to lower supply from West Bengal, and thus the price of potatoes saw a rise across the country," said a trader from the Agriculture Produce Market Committee (APMC) in Vashi. In spite of the wholesale market receiving fresh crops from neighboring state Gujarat, the price continues to hover over Rs13 per kg and thus, the price in the retail market has not come down to Rs20 per kg.

According to traders, there is a possibility of potato prices coming down if supplies from West Bengal and Uttar Pradesh become normal. These two states are the leaders in potato production and meet the demand of most states across the country. In these two states, the output of potatoes has fallen by around 10-15%, and the impact is being seen through increasing prices.

Currently, the APMC is receiving around 60 potato-laden trucks, which is a normal supply. On Wednesday 9 Nov., APMC Vashi received 9020 quintals of potato and the average price was Rs13 per kg. "The normal supply of potatoes is around 14,000 quintals to meet the daily demand," said an administrative officer from APMC, Vashi.

The official added that the West Bengal government has restricted supplies of potatoes to other states to curb price rises within the state.

Meanwhile, potato farmers in Gujarat are a happy lot this year, as they are getting better prices for their produce despite a 15% increase in potato production.

"As compared to the price of Rs5-6 per kg in 2015, local farmers are currently fetching Rs10-12 per kg in the wholesale markets, thanks to lower production in other states," said a trader.

(1 Indian Rupee=0.015USD)