Potato Prices Spike 60% in a Month Due to Supply Dip

Wholesale market traders have reported a staggering 60% surge in prices over the last month. This upward trajectory is anticipated to continue due to a substantial reduction in potato cultivation this year. 

Following substantial losses suffered by farmers owing to overproduction last year, a considerable number have opted for reduced cultivation this season. Moreover, a shift in cultivation preferences has been noted, with an increasing number of farmers favoring garlic over potatoes following last year's spike in garlic prices, further contributing to the decline in potato production.

According to the administrative department of APMC, potato prices rose from Rs 10 to Rs 15 per kg in March to Rs 18 to Rs 22 per kg in the second week of April, representing a substantial increase within one month.

In the retail market, potatoes are currently priced at Rs 30 per kg. "With potato production dwindling, we anticipate a further decrease in supply," remarked a trader from the Onion-Potato market in Vashi.

Presently, the market receives 35-40 trucks of potatoes, primarily from Gujarat, Madhya Pradesh, West Bengal, and Uttar Pradesh. "The bulk of our supplies come from Uttar Pradesh and Madhya Pradesh. However, both states experienced low production this year, resulting in reduced supply," explained another trader.