Potato futures rise 2.97% on tight supplies, rising demand

Potato prices recovered by 2.97 per cent to Rs 1,377 per quintal in futures trade today as speculators engaged in building-up positions even as the government imposed stock holding limits in a bid to improve availability and rein in prices.
At the Multi Commodity Exchange, potato for delivery in August surged by Rs 39.70, or 2.97 per cent, to Rs 1,377 per quintal with a business turnover of 26 lots.
Potato for delivery in July also jumped by Rs 38.10, or 2.78 per cent, to Rs 1,408 per quintal, with a trading volume of 135 lots.
Market analysts said sentiments remained up as speculators engaged in enlarging positions on restricted supplies but the government's curbs to improve availability in the stock market and check rising prices, limited the gains.

The government had decided to bring onion and potato under the purview of the stock holding limits under the Essential Commodities Act, 1955.
"With this, we are giving right to state governments to take stern action against hoarding and black marketing," Law Minister Ravi Shankar Prasad said earlier this week.