Following a significant surge in mid-March, potato prices in India are expected to ease, potentially offering relief to consumers. The spike, reaching Rs 24-25 per kilogram, was influenced by various factors impacting production and labor availability. Analysts anticipate a reduction in potato rates, a staple food item across the country, supported by regular supplies during the rabi season.
The Jyoti variety saw a retail price hike of 30-40% in mid-March, attributed to production shortages and labor constraints during festive periods. Currently, retail prices in the national capital are around Rs 10.75 per kilogram, indicating a downward trend. Wholesale prices are expected to further ease from the current Rs 15-18 per kilogram before a potential increase in the upcoming months.
Potato prices typically decline until April before a possible rise in May. Projections suggest a rise in good quality potato prices to Rs 30 per kilogram in the coming months, contrasting with March’s rates. Anticipated growth in potato production, with an expected 7.7% increase in Uttar Pradesh to nearly 16.7 million tonnes, signals positive developments in the sector. Despite delays in procurement initiation, the UP government’s assurance of a minimum support price of Rs 650 per quintal aims to support farmers during this transition period.
Looking at the 2023-24 crop year, the Department of Agriculture’s preliminary estimates indicate a slight decrease in national potato production. Estimated at around 58.99 million tonnes, this forecast is marginally lower than the previous year’s production of approximately 60.14 million tonnes.
