In a recent development in India, wholesale market traders are grappling with a significant up to 60% increase in potato prices over the past month. This surge is attributed to a notable decline in potato cultivation this year, leading to an imbalance in the supply-demand dynamics.
The surge in potato prices is a direct consequence of the substantial reduction in cultivation witnessed this season. In the aftermath of heavy losses incurred by farmers due to overproduction last year, many farmers have scaled back their potato cultivation. Additionally, there has been a noticeable shift in farming preferences, with more farmers opting to cultivate garlic over potatoes, influenced by the spike in garlic prices experienced last year. This shift has further exacerbated the decline in potato production.
According to the Agricultural Produce Market Committee (APMC), potato prices skyrocketed from Rs 10 to Rs 15 per kg in March to Rs 18 to Rs 22 per kg in the second week of April, marking a significant escalation within a short span of one month. In the retail sector, consumers are currently paying Rs 30 per kg for potatoes.
Traders operating in the Onion-Potato market in Vashi, Maharashtra, have expressed concerns about the dwindling potato production, foreseeing a mismatch in demad and supply. The market heavily relies on potato supplies transported via 35-40 trucks from regions such as Gujarat, Madhya Pradesh, West Bengal, and Uttar Pradesh. However, the reduced production in Uttar Pradesh and Madhya Pradesh this year has resulted in a shortage of supply, affecting market prices significantly.
Market experts predict that the potato price surge is likely to persist in the coming months.
