Potato hits lower circuit, tumbles 4%

Speculators offload their positions amid arrivals of fresh crop in market

Potato prices hit daily lower limit by falling 4% to Rs 795.30 per quintal in futures trade today as speculators offloaded their positions amid arrivals of fresh crop in the market.

Potato prices fell for the fifth straight day at the domestic markets as a result of easy availability of stocks in the physical markets on fresh arrivals from producing regions of Uttar Pradesh and Punjab.

Sentiment weakened further as traders offloaded their positions due to low demand in the domestic markets, fearing more fall in prices.

At the Multi Commodity exchange, the October contract for potato tumbled by Rs 34, or 4%, to Rs 795.30 per quintal, with a business volume of 34 lots.

The March contract also eased by Rs 7.10, or 0.97%, to Rs 718 per quintal, with a trade turnover of six lots.