Potato prices have crashed following a surge in supplies driven by robust harvest prospects in key producing states — Uttar Pradesh and West Bengal — along with substantial carry-forward stocks.
With old stocks from the previous season entering the markets, the all-India average retail potato price stood at Rs 21.85 per kg on Friday, according to the price monitoring cell under the Department of Consumer Affairs. This marks a decline of over 2.47% month-on-month and more than 11% compared to a year ago.In Delhi and adjoining areas, retail potato prices are currently ruling at Rs 10–12 per kg.
Robust arrivals drag rates; mandi expects pressure to persist through July
“Market prices have fallen to Rs 3–5 per kg as supplies have been robust against demand,” said Ram Baran, a commission agent at Azadpur mandi, the country’s largest wholesale market for agricultural produce. He added that prices are likely to remain under pressure until July as harvesting and storage have commenced and crop prospects remain strong in key producing states.
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 oversupply in the market.
The agriculture ministry has projected potato production at 58.1 million tonnes (MT) for the 2024–25 crop year (July–June), while output in the current year could be close to 60 MT. According to traders, potato output in West Bengal — the second-largest producer — is projected at 14–15 MT in the 2025–26 crop year (July–June), the highest in the last five years.
Meanwhile, onion prices have also declined. The all-India average retail onion price stood at Rs 26.96 per kg on Friday, down 6% from a month ago and 27% lower than a year earlier.
“Current onion market prices have dropped to around Rs 1,000 per quintal on robust kharif and summer harvest prospects, while exports have been sluggish in the current fiscal,” said Jaydutt Holkar, director of the Agricultural Produce Market Committee (APMC), Lasalgaon, Nashik.
Onion farmers in Nashik — the hub of wholesale onion trade — have protested in recent days against the continued fall in prices. The prevailing rate of Rs 1,000 per quintal is significantly below the cost of production, estimated at Rs 1,600–1,800 per quintal, leading to heavy losses.
Export hit as rivals self-supply and cheaper origins gain ground
India’s onion exports are also facing challenges from Bangladesh and Saudi Arabia, which are increasingly relying on domestic production. Imports from Pakistan and Sudan have become more economical due to their weaker currencies against the US dollar compared to India.
Traders have suggested that India should explore new export destinations and promote value addition in these products. The value of India’s onion exports during April–December FY26 declined 22% to $298.69 million, compared with $380 million in the corresponding period of 2024–25.
The government had lifted the 20% export duty on onions, imposed on September 13, 2024, effective April 1, 2025.Earlier, the Ministry of Statistics stated that onion prices declined 29% year-on-year in January 2026, while potato prices also registered a sharp annual decline.