Ware, or fresh, potato exports plays a significant role in India’s agricultural trade. Looking at the calendar year 2024, Indian fresh potato exports experienced a slight decrease in volume, falling by 0.6% to reach 513,537 tonnes. However, despite this marginal dip in volume, the value of these exports saw a healthy increase. The total value for 2024 was a record ₹9.859 billion (US$110 million), which is 16.4% more than in 2023. This suggests that the average price received for Indian ware exports rose, increasing by 17.1% in the year to ₹19200/tonne (US$221).
Delving into the destinations, Nepal remained a major market for Indian ware exports in 2024, accounting for 45% of the annual figure. Although the annual volume to Nepal was down by 10.4%, December sales saw Nepal account for 75% of the monthly figure. The average price for exports to Nepal in 2024 was ₹12865/tonne. Bangladesh has also emerged as a significant market over the past two years. In 2024, sales to Bangladesh were 24.3% higher than in 2023, reaching 83,786 tonnes. The average price for exports to Bangladesh in 2024 was ₹16659/tonne.
India has also successfully built trade with more distant markets. It’s interesting to note that these more distant destinations often pay considerably more than neighbouring countries. For instance, despite exporting 30,000 tonnes fewer potatoes to Oman, the value of that trade increased. Annual sales to Oman reached ₹1.430 billion in 2024, with an average price of ₹26706/tonne. Other markets like Indonesia, Malaysia, and the UAE also showed growth in value or volume in 2024. Indonesia’s annual sales value increased by 31.2%, Malaysia’s saw a slight decrease in volume but a small increase in price, and the UAE experienced a 58.4% increase in sales value.
On the domestic front, factors such as weather conditions, which are attributed to a changing climate, have impacted production in key potato-growing regions like Uttar Pradesh. Reduced yields due to very hot planting temperatures and smaller tuber sizes have been reported. However, this picture is balanced by reports of record-breaking crops in other areas like West Bengal and Gujarat, driven by increased planted areas and strong yields. This higher production elsewhere is putting pressure on domestic farm-gate prices due to limitations in cold storage capacity. This dynamic between varying regional production levels could potentially influence future export availability and pricing.
Overall, while the total volume of Indian ware exports saw a minor decrease in 2024, the significant increase in value and average price indicates a positive trend, possibly driven by a focus on higher-value markets and products. The diversification into more distant markets paying higher prices is a notable development.
Source: World Potato Markets
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