The recent surge in potato prices, escalating by approximately 40% over the past year, has triggered distress among consumers. The spike in prices is predominantly attributed to a decline in potato production, leading to a challenging scenario for buyers. Chennai currently stands as the city with the highest potato rates, exacerbating the cost burden on residents.
The escalating prices of potatoes have exacerbated the woes of the general populace, with a notable 40% surge in prices within the last year. The ongoing rise in prices is primarily attributed to crop failures witnessed in several states. Traders foresee a continual increase in potato prices in the foreseeable future, compounding the existing challenges posed by the escalating wholesale costs of potatoes.
Between April 1, 2024, and May 25, 2024, the wholesale prices of potatoes have surged by over 25%. The surge in prices has impeded the smooth flow of potatoes from cold storage to markets, further compounded by heightened consumption levels during the summer season.
Potato traders anticipate a sustained period of high prices with no immediate relief in sight. Some traders predict that the situation may persist until the festival of Diwali, indicating a prolonged period of price instability.
Traditionally, potatoes are withdrawn from cold storage facilities in July-August. However, this year, the demand for potatoes is anticipated to surge earlier than usual, with no respite in prices expected until November.
Notably, data from the Ministry of Consumer Affairs reveals a sharp rise in potato prices, reaching up to 40% over the span of a year. Presently, potatoes are retailed at an average price of Rs 30 per kilogram, with a recent uptick of up to 7% in prices over the past month.
Reports from traders suggest that poor potato harvests in Uttar Pradesh and West Bengal have significantly contributed to the price hike. The estimated potato production for this year stands at 59 million tonnes, a decline from the previous year’s estimate of 60.14 million tonnes. The burgeoning potato prices are poised to impact the government’s inflation metrics.
In a striking development, Chennai has emerged as the city with the highest potato prices, surpassing Rs 50 per kilogram. The current rates in other major cities stand at Rs 25 per kilogram in Delhi, Rs 30 per kilogram in Mumbai, Rs 29 per kilogram in Kolkata, and Rs 27 per kilogram in Ranchi, underscoring the nationwide disparity in potato pricing.
