In response to the expected prolonged surge in potato prices due to decreased production, the Indian government is contemplating permitting potato imports from Bhutan and exploring other sourcing avenues, as reported by a senior official. The current weather-induced damages in major potato-producing states like West Bengal and Uttar Pradesh have severely impacted this year’s potato output, resulting in a significant price hike.
The government is preparing to authorize traders to import limited quantities of potatoes shortly, confirmed the official on condition of anonymity. Despite a favorable base effect from the previous year, food inflation has risen to 9.4%, primarily driven by the persistent spikes in vegetable prices. Notably, the combined inflation rate of tomatoes, onions, and potatoes has reached 48.4%, led by onions and potatoes.
Anticipating a continued firmness in potato prices over the next few months, an agricultural analyst highlighted the likelihood of a potato shortage surfacing as early as October, deviating from the usual occurrence in November-December. Market dynamics suggest that significant farmers and traders are stockpiling their potato inventories in anticipation of a price upsurge in the upcoming months, contributing to a decline in cold storage utilization this year.
The estimated potato output for the current year stands at approximately 58.99 million tonnes, a decrease from last year’s output of about 60.14 million tonnes, as per the initial agriculture ministry estimate. The recent surge in prices of other green vegetables due to severe heatwaves has nudged consumers towards potatoes as an alternative.
In 2022-23, India imported fresh or chilled potatoes worth $1.02 million, with neighboring nations like Bhutan and Nepal, alongside countries like Brazil and Mozambique, being traditional sources of potato imports. The Central Potato Research Institute has issued a cautionary advisory to potato farmers nationwide, highlighting the heightened risk of late blight disease, a fungal infection, due to changing weather patterns.
Previously, the government had permitted potato imports from Bhutan without restrictions until June 2024. Despite being the world’s second-largest potato producer after China, with an output of 55 million tonnes last year, India continues to monitor its potato market closely amidst the evolving production and supply dynamics. Ukraine and the US hold the third and fourth positions, respectively, in global potato production.
