Potato prices likely to stay subdued over the next few months

Potato price ranges are probable to rule subdued in excess of the upcoming couple of months, even though they have elevated by ₹100 a quintal considering that a thirty day period in the past as offloading of stocks in warehouses has just begun.

“Cold storages in Bengal have just opened immediately after the elections to the State Assembly ended. So far, potatoes have been coming immediately from the farmers’ fields. Storages have been shut owing to non-availability of labour,” mentioned Patit Paban De, potato chilly storage operator and former president of West Bengal Cold Storage Affiliation (WBCSA).

Potato chilly storages may well run out of space before long

Presently, modal price ranges of the spud (amount at which most trades consider position) are ranging from ₹850 in a variety of terminal marketplaces in Uttar Pradesh’s Agra district to ₹1,250-one,270 in Bengal agricultural marketplaces.

“Wholesale price ranges of potatoes are ruling at ₹10 a kg in spots these kinds of as Gujarat, though in retail stores they expense double,” mentioned Ashish Expert, Senior Vice-President, Federation of Cold Storage Affiliation of India (FCSAI).

“In Indore, marketplaces have been closed for a thirty day period now. But potatoes are readily available at ₹13-thirteen.fifty a kg and those people kept in the chilly storages are readily available at ₹15-fifteen.fifty a kg,” mentioned Ajay Agarwal, a trader from Indore in Madhya Pradesh.

Potatoes in Madhya Pradesh are normally priced better as they are employed for chips, wafers and processing. “Stocks are entire in warehouses in Madhya Pradesh as the generation is good,” he mentioned.

Bengal’s potato output viewed up by sixteen% on better area, favourable climate

Paban De mentioned that only 30 for each cent of the chilly storages have been open in Bengal now and the relaxation would open in a week’s time. “But we expect need to be good this 12 months as there is communicate of a shutdown to manage the Covid pandemic,” he mentioned.

The next wave of Covid, at present on throughout the place, has resulted in some States saying shutdowns and a variety of other curbs to deal with the pandemic’s unfold.

States these kinds of as Maharashtra, Delhi, Karnataka and Tamil Nadu have come up with their possess programs of curbing the motion of persons to manage Covid.

“Many persons are acquiring additional potatoes in planning for the shutdown. It has also resulted in price ranges increasing,” Paban De mentioned.

Even so, FSCAI’s Expert mentioned these kinds of more acquiring was not staying witnessed in the western areas of the place. “People seem to be acquiring hand-to-mouth in Gujarat just to satisfy quick requires,” he mentioned.

Also, the curbs this time to deal with Covid are not as stringent as previous 12 months when transportation throughout the place had come to a halt.

“There is no trouble with transportation this time. This has resulted in persons not resorting to any worry order of potato,” Expert mentioned.

In addition, this time around persons have been acquiring additional citrus fruits these kinds of as lemon, oranges in addition to tender coconut, musk melon and watermelon, he mentioned.

Guru’s statements are in line with the selling price trend for potatoes that was witnessed previous 12 months. Through the identical time previous 12 months, the spud’s price ranges have been ruling over ₹1,three hundred a quintal.

“People buy additional potatoes throughout lockdown considering that they consume additional veggies though at household. It transpired previous 12 months and could come about this 12 months far too,” mentioned WBSCA’s Paban De.

Last 12 months, it resulted in better usage even as generation was reduced, pushing up price ranges to record levels in retail stores. Through November previous 12 months, the spud’s price ranges dominated in between ₹2,750 and ₹2,900 a quintal in main agricultural marketplaces throughout the place, though they dominated in the vicinity of ₹50 a kg in retail stores.

History generation

According to the Ministry of Client Affairs, price ranges of potato are at present ruling at ₹19 a kg at retail stores in Delhi and ₹21 in Mumbai.

A main reason for price ranges ruling reduced this 12 months is that potato generation throughout the recent period (July 2020-June 2021) has been estimated at a record fifty three.eleven million tonnes (mt) compared with 48.56 mt a 12 months in the past.

According to the Ministry of Agriculture and Farmers’ Welfare, generation is viewed at a record superior in look at of the area under cultivation of the spud expanding to two.25 million hectares (mh) from two.05 mh a 12 months in the past.

Through 2019-twenty, generation was reduced as the crop was influenced by unseasonal rains in the rising locations of States these kinds of as Maharashtra and Madhya Pradesh, though farmers also did not clearly show interest in look at of very low price ranges then.

“The crop is good and stocks are superior in chilly storages as generation in all States enhanced,” mentioned FSCAI’s President Mahendra Swarup.

“This 12 months, we really don’t expect to make superior gain as farmers could lock in their generate for a for a longer period time period .Potatoes are just about everywhere. Scope for price ranges to shift up like previous 12 months is constrained,” he mentioned.

Expert mentioned that arrivals until now have been from farmers who had saved on their farms. “This will stop in a 7 days and then only we can expect the stocks to come out thoroughly from storages,” he mentioned.

“But we expect price ranges to stay subdued considering that sufficient stocks are readily available,” he mentioned.

WBSCA’s Paban De mentioned farmers could have paid out at least ₹500 for each quintal to retail outlet the spud in chilly storages, which includes loading and unloading charges.

“They will have to get at least ₹1,three hundred a quintal for graded versions like Jyoti to recover their fees. Normally, they will discover it tough even to fork out interest for the financial loans they had availed of,” he mentioned.

In look at of better generation, potato farmers had opted to retail outlet their generate in chilly storages. By mid-March this 12 months, nearly all chilly storages in Bengal have been crammed to capability as farmers hoped to get much better price ranges later.

“We are at present not witnessing any sharp increase in price ranges,” mentioned Indore trader Agrawal.