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Supply shortage, rise in demand push potato prices in India up by 40% in major cities

In the major metros of Mumbai, Delhi, Kolkata and Chennai, potatoes are selling for Rs 30-45 per kg, depending on the variety and quality. In Mumbai, a kg of potato is priced at Rs 35-45, while in Delhi and Kolkata prices are hovering between Rs 30-40 per kg.

Potato traders from Uttar Pradesh, the largest producer of potatoes in India, said prices are unlikely to come down until November, when the new crop starts coming in.

The surge in potato prices is largely due to lower production, which was also the case with onions last year. In some cities, onion prices last year breached the Rs 200 per kg mark due to a major supply crunch.

Arvind Agarwal, president of Cold Storage Association of Uttar Pradesh, told ET: “At the wholesale level, price is around Rs 24-25 per kg and at the retail level it is around Rs 30-35 per kg. Potato farmers faced bad times in last three consecutive years. This time they are at least being able to earn something on their produce. Prices are unlikely to fall till November as the demand is on the higher side. Also, vegetable prices have gone up. So people are depending on potatoes now.”

Source: The Economic Times. Full report here

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Lukie Pieterse, Editor and Publisher

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