Karnataka arrivals in Sept may cool down potato prices

Market is bullish on higher supplies of low-quality Agra variety.

Potato prices are likely to decline in September, when the second crop from Hassan, Karnataka, hits the market. The prices may also decline as farmers, holding stocks in anticipation of a price rise, will start dumping the vegetable, with the demand shifting from the Agra variety to the Hassan variety.

The Hassan variety is considered the king of potatoes and is sold at a premium. Although, Hassan supplies roughly 5 per cent of the national consumption, it will change the market sentiment to bearishness from the current bullishness. The potato market is currently in a bullish phase, owing to higher supplies of the low-quality vegetable and a low demand for the Agra variety.

Potato prices continued to surge in Mumbai's Agriculture Produce Marketing Committee (APMC) as the good-quality potato remained unavailable even at a premium.

Potato is currently in the range of Rs 90-95 per 10 kg for the polished one. The super potato, with less rot (fungus), witnessed a jump of Re 1 a kg in the last one week. The medium variety, with comparatively more fungus, is quoted in the range of Rs 80-85 per 10 kg, while the poor-quality potato, with no guarantee of good flesh, is sold between Rs 60 and Rs 65 per 10 kg in the Mumbai APMC yard.

Rotten potatoes are in supply in large quantity with a daily arrival of 115 trucks of 15 tonnes each and the scenario is likely to continue until September, when the new Hassan crop hits the market.

"Consumers are forced to buy this non-hygienic potato as the good-quality crop is not available," said APMC Director Ashok Valunj. Prices of green vegetables were touching the roof, making them unaffordable for many middle-class consumers, who consumed potato as an alternative to the costly green vegetables, added Valunj.

The potato looks good from outside, but black patches can easily be noticed when cut. When potato is stored in cold storage with little amount of mud left in it while harvesting, it develops black patches inside. During the 6-8 days between cold storage and the time the crop hits the market, the mud turns into fungus inside the vegetable.

"The incessant rains continued about a week at the time of harvesting potato this year, resulting in farmers hurriedly sending the output to cold storages to prevent the fields from getting spoilt," said Nitin Parikh of Hari Om Traders, a Mumbai trader.

Once harvested, potato comes into close contact with water and the produce starts rotting in the sun and open air.