The government has announced a market intervention programme after potato prices crashed due to a surge in supplies, driven by robust harvest prospects in key producing states—Uttar Pradesh and West Bengal—trade sources said.

The average all-India wholesale price of the vegetable, according to the Department of Consumer Affairs, declined to Rs 1,417 per quintal on Sunday, a fall of 22% year-on-year.

The average retail price of potatoes has dropped to Rs 20.21 per kg, down 17% year-on-year. In Delhi and adjoining areas, retail potato prices are currently ruling at Rs 10–20 per kg.

Harvested potatoes placed in cold storage possibilities

While harvested potatoes have been stored in cold storage and will be released in a calibrated manner until the new crop arrives next year, the surplus harvest entering the market has pushed prices down.

Traders in Agra, the country’s hub of potato trade, said the government’s move to procure 2 million tonnes (MT) of potatoes at Rs 650 per quintal may not attract much interest from farmers, as the offered price is still lower than the current market price of Rs 900–Rs 1,000 per quintal.

“This timely measure will empower potato-growing farmers in Uttar Pradesh by securing them profitable returns on their investment and produce, while preventing forced sales at suboptimal prices amid market fluctuations,” according to an agriculture ministry statement.

“Only at a few pockets of the Mathura belt of Uttar Pradesh, the government may get potatoes at prices in the range of Rs 600-Rs700/quintal, while in the Agra belt, prices are ruling higher, yet below the last year’s prices because of higher production,” Shyam Bahadur Chauhan, owner of JR cold storage in the Agra region, told FE. Chauhan said farmers usually incur a cost of Rs 260 per quintal for storing potatoes in cold storage for around 10 months starting in March.

Potatoes are typically stored in cold storages after harvesting in February and meet domestic demand until November. Traders said that this year, stocks remained in cold storage until January, resulting in an oversupply in the market.

The agriculture ministry has projected potato production at 58.57 MT for the 2024–25 crop year (July–June), an increase of 2.66% year-on-year. Retail inflation in potatoes declined by 18.98% in March 2026, compared to the same month last year, according to the Ministry of Statistics and Programme Implementation.