Potato prices high; supply to ease soon

Potato prices in the city are going skywards. Consumers have to pay nearly Rs 14-15 per kg (up 26 per cent), while it was available at Rs 10-11 per kg last week.

As recent as last week wholesale price of good variety potato (which has minimal-to-no wastage, thin skin and constant taste) was priced at Rs 10-11 per kg at Agricultural Produce Marketing Centre (APMC) in Navi Mumbai. inferior quality potato (which has about 10 per cent wastage) was sold at about Rs 8-9 per kg.

Local supply has come to a halt as there is no fresh stock coming to the APMC. Supply from Agra is constant at about 1,000 tonne per day.

"We tried to bridge the supply gap by augmenting stocks from Agra, but there is a paucity there too, which has resulted in the shortfall here," said Ramdas, a potato trader at APMC.

In Maharashtra, farmers are hanging on to their produce for a couple of days before selling it to the stockist, who in turn hold it for a few more days, before offloading it in the open market. This is adding to the supply lag.

Total daily arrival of potato in the market is about 2,000 tonne, half of which comes from Agra, and about 10-15 per cent comes from Indore. The remaining 25-odd per cent is supplied by local farmers, who are expected to begin supply in next few days.

Supply from Indore too has been poor but the situation is expected to correct itself by December 5, and local supply too is expected to return to normal by then. Therefore, the price of potato would decline only after supply worries ease. meanwhile, potato prices may further rise by Re 1-2 per kg till the end of the current month.

The current price is Re 1 lower than Wednesday's price as buyers are off the market on Friday.

The potato season has already started, and no trader is willing to risk a loss on their investment this early. "If the wholesale prices of potatoes is Rs 12 per kg, cost to consumer is likely to be in the range of Rs 15, after factoring in transportation and wastage," Ramdas added.