Adverse weather conditions in the key potato growing regions of Uttar Pradesh and West Bengal earlier this year have led to a drop in the output in the 2023-24 crop year (July-June) resulting in a rise in retail prices in the last couple of months.
Traders and owners of cold storage facilities, where potatoes are stored and released in a calibrated manner during the April-November period, say that prices are expected to stay elevated till the end of November, after which the new crop starts arriving in the market.
“The yield this year in Uttar Pradesh is around 115 quintal/acre against 150 quintal last year because of cold conditions prevailed in January. The lack of sunlight had impacted potato tubers formation,” Shyam Bhadur Chauhan, owner of JR cold storage in Agra, the hub of the country’s potato wholesale trade, told FE.
In West Bengal, the second largest potato producing state, traders said that output has been hit because of unseasonal rains during sowing and harvesting of the key crop.
Traders sources said in Uttar Pradesh and West Bengal, which have more than a 53% share in the country’s production of the key vegetable, there has been a 10% decline in output of potato because of a yield loss due to adverse weather events.
The first advance estimate of horticulture crop production by the agriculture ministry says that potato production in the 2023-24 season is estimated to decline marginally to 58.88 million tonne (MT) from a record 60.14 MT in the previous year because of ‘decrease in output’ in West Bengal.
Vaibhav Sharma, a potato farmer from Agra, said that mandi prices are currently around Rs 22/kg against around Rs 13/kg prevailed a year ago
The modal retail prices of potato across the country, according to department of consumer affairs data on Thursday, was Rs 30/a kg, an increase of 50% compared to prices that prevailed three months back.
The rise in retail prices of potato last month was 53% against an increase of 41% in March, 2024. Due to the bumper output in 2022-23, potato prices were in the negative zone during February, 2023 to January, 2024.
Trade sources said in 670 odd cold storages located in Agra, Hathras, Mathura and Firozabad districts of Uttar Pradesh, about 26 crore packets (of 50 kg each) of the key vegetable have been stored which is about 2 crore packets less than previous year.
According to Pachimbanga Pragatishil Alu Byabsayee Samiti, 12.6 crore packets have been kept in cold storage facilities this year, which is about a crore packet less than previous year.
Potatoes are stored in the cold storage by farmers after harvesting during February 15 and March 31.
About 60% of the output of the key vegetable is stored in cold storage while about 15% of the produce arrives directly into the market after harvesting while the rest is used as seeds.
Uttar Pradesh, West Bengal, Punjab and Bihar have more than 80% share in potato production. Potatoes have a 0.98% weightage in the Consumer Price Index.
