India: Potato price continues to soar

In the past several years, potato farmers in the potato belt of UP and other districts were seen dumping their produce on the streets to protest against its low price and subsequent losses they suffered. This year, however, potato prices have increased four-fold and it is selling at an average Rs 60 per kilo across the state as against Rs 10-15 per kilo in 2019.

“Earlier, potato prices were low due to high yield, leading to heavy losses for farmers. This year, many farmers opted out of potato cultivation as they were concerned about storage and distribution of their produce during the pandemic. With supplies down, potato prices skyrocketed not just in Kannauj but in other districts of UP as well,” said an official of the Horticulture department.

UP is the largest producer of potatoes in the country. An estimated 25 lakh farmers are engaged in potato cultivation.

According to the Horticulture department, the sowing of potatoes started late due to rains in September and October. The yield per hectare was also affected due to rains in February this year. Production of potato in UP has been under 140 lakh metric tonnes (MT) this season as against 160 lakh MT in 2019.

By October 31 this year, 90 per cent of the potatoes kept in the 15 cold stores in Lucknow had made their way to the mandis for sale, but the prices still did not come down.

The traders say the average single-day demand for potatoes in Lucknow is about 4,000 bags, each weighing 50 kilos. The low off-take of potatoes for weddings, which have been severely curtailed this year due to the pandemic, has not helped either.

Another reason for the price hike is hoarding and black-marketing. On November 1, Chief Minister Yogi Adityanath had ordered raids against hoarders. Such action across districts has not helped bring down potato prices.

The wholesale price of potato at the wholesale vegetable market in Lucknow is about Rs 50 a kilo while the retail price is Rs 60-70 a kilo.

An official of the Cold Storage Association of UP said potatoes in cold storage last year accounted for about 78 per cent of the total capacity but this year, it had come down by about 15 per cent.

Storage this year has been costlier at Rs 15-18 a kilo. It is more than double the rate last year.

The official said the potato traders who suffered losses in the past from keeping their produce in cold storage were not ready to sell at lower prices and this had also led to an increase in price of the commodity in the retail market.

Sources in the Horticulture department said efforts were on to expand cold storage facilities.

There are currently 1,911 cold stores in UP, with a total capacity of 15 lakh MT.

Considering the rising prices of potato, the state government has decided to keep enough stock in its direct control for off-season supply. To enable this, small cold storage facilities will be built in 54 blocks where potatoes are produced.

Additional Chief Secretary (Horticulture) Manoj Singh said the block-level cold storage facilities were being planned in districts where no cold storage was available.