Further decline in the prices are anticipated in the coming days.

The reason for the slippage in potato prices is two fold. One is due to the heavy arrivals of the commodity from the neighbouring Bangalore market. The daily arrivals of potato is around 25-30 loads with each load comprising 10 tonnes, while the daily requirement in the local market is only about 10-15 loads.

This disparity is mainly because of a fix that Karnataka, one of the major producer of potatoes, is in. The forecast of a reasonable monsoon has failed to materialise leaving the Karnataka farmers in lurch. Potato output, fairly reasonable so far this year, has suddenly become infested with insects owing to the dry climate.

The decayingstockpiles are being hurriedly despatched by the farmers by dumping into the Bangalore market and later finding their way into Tamil Nadu.

Because of this, the realisation value on these potatoes has gone down to Rs 2-3 per kg, while the cost of production hovers around Rs 10 per kg.

The second reason, however, is of a different nature. This is due to the leakage of ammonium gas from the cold storage plant at the local wholesale market, Koyambedu a couple of months ago.

The plant had been harbouring about 67 loads of potatoes in anticipation of a rising demand. However, with the leakage of the chemical gas, the plant had become dysfunctional resulting in the decay of vegetables. These stocks, too, are being pushed into the market quickly to prevent any further loss. All these factors have resulted in the steep price fall of potatoes in the local market. However, the dealers and suppliers are hopeful of some improvement in the price conditions after Diwali.