Export floor price on potatoes lifted

The government on Thursday lifted the minimum export price (MEP) of $450 (Rs 27,972) a tonne imposed on potatoes, after prices in the retail markets saw a sharp decline due to a bumper harvest. "To check the rising prices of potato and raise domestic supplies, the Centre had decided to impose MEP on June 26, 2014. Due to higher domestic availability of potato, the government has now decided to remove it," said an official statement on Thursday.

The removal of the MEP on potato will help farmers realise remunerative prices and also help exporters earn valuable foreign exchange through exports, the statement added.

Retail prices of potatoes have dropped by Rs 6-10 a kg since January 1 across all major markets due to a bumper harvest. India's potato production in 2015 is expected to be 42 million tonnes against 40 million tonnes last year.