The prices of potatoes have surged by 7% due to high demand and recent rainfall. The wholesale prices of Jyoti, the main potato variety in West Bengal, have seen a significant rise. Similarly, potato prices have also increased in Uttar Pradesh. However, relief is expected as potatoes from cold storage are set to arrive in the markets in the coming weeks, which should help stabilize prices.
Impact of Rainfall and Demand
The combination of high demand and rainfall has driven up potato prices. In West Bengal, the wholesale price of the Jyoti variety has increased by up to 7%. Uttar Pradesh has also experienced a rise in potato prices. While average prices in Delhi’s Azadpur Mandi have remained stable, the maximum prices have increased. Experts predict that the arrival of potatoes in Delhi may be affected by the rain, potentially leading to further price increases in the next few weeks. However, the government expects prices to remain stable due to adequate potato availability. The arrival of potatoes from cold storage is anticipated to bring prices down.
Cold Storage and Production Data
According to the Ministry of Agriculture, 273.2 lakh tonnes of Rabi potatoes have been stored in cold storage this year, sufficient to meet consumption demand. The rate at which potatoes are released from cold storage between March and December controls their prices. Although potato consumption has decreased in July compared to April, May, and June, prices have risen because the cold storage stock has not yet reached the markets. It is estimated that the arrival from cold storage will begin in the next few weeks, which should help control prices.
Increase in Kharif Potato Crop Area
The Ministry of Consumer Affairs, Food and Public Distribution reports that the potato acreage for the Kharif season has increased by 12% compared to last year. The quantity of Rabi potatoes in cold storage is sufficient to meet consumption demand. While potato is primarily a Rabi crop, some Kharif potatoes are produced in Karnataka, Himachal Pradesh, Uttarakhand, Meghalaya, Maharashtra, and Tamil Nadu. The Kharif potato crop, harvested from September to November, boosts market availability. Himachal Pradesh and Uttarakhand have nearly completed their target sowing areas for the Kharif season, with good progress in Karnataka and other states.
Price Trends in Major Markets
In Azadpur Mandi, one of Asia’s largest markets, the average wholesale price of potatoes remained stable in July, but maximum prices have increased. Experts suggest that rain could affect market supply, leading to higher prices. The average price of potatoes in the market is Rs 1,000 per quintal, while the maximum wholesale price is Rs 4,000 per quintal.
In Uttar Pradesh’s Lucknow Mandi, wholesale potato prices have risen by more than 7% in just seven days. Data from AgMarknet shows that maximum wholesale prices in Lucknow Mandi increased from Rs 2,090 per quintal on July 1 to Rs 2,250 per quintal on July 8. The average price also saw a 3% increase, from Rs 2,075 per quintal on July 2 to Rs 2,150 per quintal on July 8.
Jyoti Variety Price Increase
The wholesale average price of the Jyoti potato variety in Kolkata’s Bara Bazar has jumped by 7%. On July 1, 2024, the price was Rs 2,700 per quintal, which rose to Rs 2,900 per quintal by July 5. Given the current rain and flood situation in many states, further price increases are anticipated.
