Potato prices soar 40% in Bengal despite govt claims of stable output

Second govt estimate expected within a month; traders contend production is quite lower than last year

The price of potatoes has risen in West Bengal by 15-40 per cent at different wholesale markets in this month. The national average for the month shows an 18 per cent jump over a month.

This is despite government data projecting the crop to be at the same level as last year. In 2015-16, total production in the country, according to the first estimates, was 48.1 million tonnes, spread over 2.08 mn hectares, against 48 mt from 2.07 mn ha in 2014-15, said R P Gupta, director, National Horticultural Research and Development Foundation (NHRDF).

A second government estimate is expected within a month and traders contend production is quite a bit lower than last year.

According to Ajit Shah, an exporter, overall production would be seven to 10 per cent less. This is mainly due to a lot of distress sale by farmers last year, on record output.

The national average price has increased from Rs 635 a quintal to Rs 754 a qtl in a month, up 19 per cent, according to data from NHRDF. In the same period, at the Kolkata mandi, the rise has been nearly 40 per cent, to Rs 980 a qtl. West Bengal is the country's second biggest producer, after Uttar Pradesh, a fourth of total output. The state's crop size is estimated lower by almost 15 per cent this year, according to Patit Paban De, member of the West Bengal Cold Storage Association.

Total potato production in Bengal is expected to be close to 10 mt this year. The retail price in this city is around Rs 15 a kg. “If the trend continues, retail prices are expected to touch close to Rs 20 a kg,” said De. In the export market, our higher prices are making the Indian variety unviable. The average export price of our variety is $250-325 a tonne. That from Pakistan and Bangladesh is $170-200 a tonne.