Potato climbs 4%, hits upper circuit in futures trade

MEP of $450 fails to cool prices, lower arrivals from growing areas fuels uptrend

Potato prices climbed 4 per cent to hit an upper circuit at Rs 1,300 per quintal on restricted arrivals from growing regions despite the government slapping a minimum export price (MEP) of $450 per tonne on the commodity to increase domestic availability and cool prices.

At the Multi Commodity Exchange, potato for delivery in August gained Rs 50, or 4 per cent to hit an upper circuit at Rs 1,300 per quintal in a business turnover of 5 lots.

Potato for delivery in July also traded up by Rs 25, or 1.98 per cent, to Rs 1,290 per quintal in four lots.

Analysts said the rise in potato prices was mostly supported by positions built-up by speculators following tight supplies despite the government imposing curbs to check persistent rise in the prices and improve availability in the markets.

The government last week slapped a minimum export price (MEP) of USD 450 per tonne on potatoes to increase domestic availability and cool prices.

Also, commodity markets regulator FMC curbed futures trading in potato contracts for July, August and September, disallowing fresh positions and hiking deposit amount on buyers.