Potato exports resume with MEP removal

Exporters start negotiations with buyers, a few consignments booked for shipment to Colombo

Potato shipments from India have resumed after almost four months on removal of the minimum export price (MEP) last week.

Exporters have started negotiations with buyers in neighbouring countries, including Sri Lanka. Sources said a couple of consignments had been booked for shipment to Colombo.

“Traders have started booking in the spot market for export shipments. Enquiries are coming in from large buyers, especially in Sri Lanka,” said Ajit Shah, president of the Horticulture Exporters’ Association.

Potato exports from India came to a standstill after the government levied an MEP of $360 a tonne on July 26 to check spiraling prices. Expectations of a delay in kharif planting had pushed wholesale potato prices to Rs 18-20 a kg and retail prices to Rs 35-40 a kg.

The government on December 27 lifted the MEP following a 79 per cent decline in potato prices from their peak. Falling prices have forced farmers to leave the crop unharvested because at Rs 2 a kg the price does not cover the transport cost.

“Based on an informal assessment, the potato acreage has risen this year with favourable weather. Production might increase proportionately,” said S K Chakrabarti, director, Central Potato Research Institute. An estimate suggests India’s potato production could set a new record of 50 million tonnes this year. The previous peak was 48 million tonnes in 2014-15.

India’s potato exports were 132,399 tonnes (worth $30.56 million) in April-September, up from 128,390 tonnes (worth $26.21 million) in the corresponding period a year ago. Most of exports were shipped before the MEP levy.