Potato prices dip 25% on fresh arrivals

Potato prices have declined by about 25 per cent in the spot market and 8 per cent in the futures market since December on account of higher crop estimates and fresh arrivals in the spot market.

"According to initial estimates, the total area potato was sown in is up by about 20-25 per cent to 18-20 lakh hectares compared with 15 lakh hectare during the same period last year. Production is also expected to be higher at around 28-30 million tonne, up by 3-4 million tonne from the previous year levels. This is much more than the normal requirement of 25 million tonne," said a Karvy Commodities analyst.

Increased arrivals from Punjab and Shimla are also contributing to the bearish trend in the commodity.

In the Delhi spot market, the average potato price has declined from Rs 450 to Rs 330 a quintal since December.

At the National Commodity and Derivatives Exchange, potato futures for April delivery have declined from Rs 533 a quintal on December 1 to Rs 490.

Potato futures for March delivery at the Multi Commodity Exchange have declined from Rs 529 on December 1 to Rs 492 a quintal.