Potato Prices Soar 25% Due to Supply Decline, No Respite Till November

Potato prices have surged by approximately 25% in the past week due to a continuous decline in supply, according to traders at the wholesale market in Vashi. Relief is not expected until new crops arrive at the end of the year, as overall production in potato-growing states has decreased. Earlier, in March and April, potatoes—a key kitchen staple—experienced a price increase of 50 to 60% due to poor supply. “This upward trend is expected to persist due to a significant decrease in potato cultivation this year,” said Ashok Walunj, director of the Onion-Potato market at the Agriculture Produce Market Committee (APMC) in Vashi.

The Vashi APMC receives potatoes from Gujarat, Madhya Pradesh, West Bengal, and Uttar Pradesh. “This year, the yield of potatoes in Uttar Pradesh and West Bengal has decreased due to adverse weather conditions. The yield per acre has dropped by 22 to 30%,” said a potato trader from Vashi. West Bengal, the second-largest potato-growing state, saw an overall production dip of 10%. “Uttar Pradesh and West Bengal contribute to half of the country’s potato demand,” Walunj added. In the first week of March, the supply of potatoes was around 7,390 quintals per day, but this has decreased to just 4,750 quintals at APMC Vashi.

Additionally, due to losses incurred by farmers following last year's overproduction, many opted for decreased cultivation this year. A shift in cultivation preferences, with more farmers choosing to grow garlic over potatoes after last year's surge in garlic prices, has also contributed to the decline in potato production. According to the administrative department of APMC, potato prices initially rose from Rs 10 to Rs 15 per kg in March. Subsequently, in the second week of May, prices saw a further rise of around 25%. “Potato prices have almost doubled in the last two to three months,” said an administrative official.

In the retail market, potatoes are currently priced at Rs 35 to Rs 40 per kg. "With potato production dwindling, we anticipate a further decrease in supply," remarked a trader from the Onion-Potato market in Vashi. He added that by November, fresh crops will enter the market and prices will come down.Currently, around 35 trucks of potatoes, primarily from Gujarat, Madhya Pradesh, West Bengal, and Uttar Pradesh, are arriving at the market.