Potato prices in India have skyrocketed in recent months, driven by a combination of unseasonal rains and lower overall production.
The current increase in potato price can be traced back to November 2023, when unexpected heavy rains devastated potato crops in West Bengal, a major potato-producing state. Farmers were forced to replant their crops in December, but their efforts were met with further challenges. Later little before harvest, heavy rains once again damaged mature potato crops in the region. These repeated weather disruptions significantly impacted potato yields, leading to a shortage in the market.
The reduced supply of potatoes has translated into a sharp increase in consumer prices. In April 2024 alone, the average price of potatoes jumped to ₹26 per kilogram (approximately $0.32 USD per kg) from ₹20 per kilogram (approximately $0.25 USD per kg) the previous month. Some regions, like Odisha, have seen even steeper price hikes, with potatoes reaching a staggering ₹30 per kilogram (approximately $0.37 USD per kg). This rise in price places a significant burden on households, particularly those who rely on potatoes as an essential staple food.
The impact of the potato shortage can also be observed in the wholesale market. On April 13, 2024, potatoes were selling at ₹1,944 per 100 kg (approximately $24.20 USD per 100kg), a rise of 11.44% compared to the previous month. Year-over-year prices have also seen a significant increase of 33.18%. This upward trend is likely due to lower production in Uttar Pradesh and West Bengal, the two leading potato-growing states in India. Potato sellers in Uttar Pradesh have reported storing 10-12% fewer potatoes in cold storage facilities due to the lower harvest. With limited potato stock readily available, farmers are holding onto their remaining supplies, anticipating further price increases.
Experts predict that potato prices will likely remain high in the near future. The Ministry of Agriculture’s first advance estimate for the 2023-24 season projects a decrease in potato production from 60.14 million tonnes last year to 58.99 million tonnes this year. This anticipated lower yield, coupled with the current shortage, suggests that consumers may continue to face inflated potato prices for some time.
