Potato prices up 20% in a month

Fears of heavy snowfall in Punjab and other hilly areas created a rumour that there could be damage of crop to the tune of 30 per cent, and that lifted up potato prices by 20 per cent in the last one month.

The potato prices are quoting between Rs 60 and Rs 70 per 10 kg in Agriculture Produce Marketing Committee, Vashi, Navi Mumbai. In comparison, the average price was at Rs 30-40 per 10 kg at the same time last year.

Unlike the rumour, a Mumbai-based trader claimed the damage was just 10 per cent. "This year, snowfall damaged only 10 per cent of crop. But, harvesting was delayed at least by one month owing to snowfall in Punjab and other hilly areas," he said.

Generally, potato harvesting begins by the end of December, but this year, the same started by the end of January. But interestingly, stocks got exhausted in time as planned for new crop.

So, due to time lag between the availability of old stocks and new crop, prices started escalating in January this year. The trend continues since then and expected to remain so throughout the year, the trader added.

In fact, the 10 per cent damage has been compensated by a similar rise in output projected this year, he said.

Secondly, since the Supreme Court verdict on tonnage of trucks, the transportation cost has increased substantially as truckers are now loading only 9 tonne instead of 14 tonne earlier.

Therefore, despite the number of trucks increased substantially to 130 trucks currently, from 90 trucks earlier, the quantity of arrivals remains the same.

Supplies have started coming in full swing from major potato-producing centres such as Uttar Pradesh, Punjab, Madhya Pradesh and Gujarat.

The quantity is expected to increase further in the coming weeks, but the price is likely to remain rangebound throughout the year, another local trader said.