Potato prices have spiked dramatically owing to diminished yields caused by crop damage from erratic November rains last year.
Data from the Department of Consumer Affairs revealed that the all-India retail price of potatoes stood at INR 26 per kg on Saturday, marking a 10.18% increase month-on-month and a 32% rise year-on-year.
Potato traders noted that the wholesale prices of this kitchen essential reached INR 1,944 per quintal on Saturday, reflecting an 11.44% increase month-on-month and a 33.18% surge compared to last year. They attributed this rise to a decrease in output in two key producing states, Uttar Pradesh and West Bengal.
Continue Exploring: Vegetarian thali prices surge 7% in March on onion, tomato, potato costs; non-veg thalis drop 7%: Crisil Report
Gopal Sharma, a potato trader from Uttar Pradesh, mentioned that the current loading in cold storage is reportedly 10-12% lower. He added that farmers, due to reduced production, are holding back on selling their stocks immediately, anticipating a rise in prices.
According to traders, potato prices are anticipated to remain elevated this year due to an anticipated low overall yield. The agriculture ministry’s initial advance estimate for 2023-24 suggests that potato production is projected to decrease to approximately 58.99 million tonnes from around 60.14 million tonnes in the previous year.
Late November rains damaged the newly planted crops, prompting farmers to replant in December. However, recent April rains have caused damage to the crops that were ready for harvest.
Continue Exploring: Retail food inflation eases to 8.52% in March 2024 as prices of pulses and oils decline marginally
