Despite favourable weather conditions leading to a bumper potato production in 2012 in West Bengal, prices of the cash crop are on an upward curve in the wholesale and retail markets in the state.
According to industry insiders, lower production of Pukhraj variety of potato in West Bengal has led to a temporary shortage in supply. Meanwhile, reports of late blight disease in certain areas of Uttar Pradesh, including Farrukhabad and Kannauj, have led to fears of lower production in
the state.
Pukhraj variety is the early potato crop to hit the West Bengal market. While the state produced 10 lakh tonne of Pukhraj variety in 2011, production this year will be almost half of that due to lower sowing. With a temporary shortage in supply, potato prices in the state have increased by R70 per quintal within weeks. Prices of the Pukhraj variety have increased from R430 to R500.
Patit Paban Dey, member of the West Bengal cold storage association, said: ?This seems to be a temporary phenomenon and prices will come down as soon as the Jyoti variety is harvested.? Jyoti variety contributes to almost 80% of the potato production in the state.
Potato in the state was sown on 4.06 lakh hectares in 2012, the similar level as of last year. Almost 4 lakh tonne potato was wasted last year owing to a bumper crop. Meanwhile, reports of late blight disease have started coming in from UP which has led to expectations of firm prices for the cash crop.
According to an Angel Broking analyst although potato output is currently estimated higher by 8.3%, it may decline below last year levels if the bad weather conditions persist. Prices of the cash crop gained sharply since December 2011 and mid-January, 2012. On Thursday March potato at the MCX traded at R766 per quintal.
?We export potato to states like Orissa, Andhra Pradesh, Assam, Manipur, Nagaland and parts of Jharkhand & Bihar. If there is a substantial shortage of production in UP, prices may firm up a little,? Dey said.