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LATEST NEWS UPDATES | Potato prices rising due to lower supplies-Sandip Das

Potato prices rising due to lower supplies-Sandip Das

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published Published on Apr 26, 2012   modified Modified on Apr 26, 2012
-The Financial Express

After plummeting to a record low two months back, the retail price of potatoes has risen sharply due to lower supplies.

The prices have been rising mainly due to expectations of a lower rabi output in the key producing states of Uttar Pradesh and West Bengal.

Traders at Delhi’s Azadpur market say potato prices have risen in the last two weeks because of lower supplies from UP, West Bengal and other states, such as Uttarakhand and Himachal Pradesh.

The decline in production in UP has been attributed to blight attacks on the crop a few months back in some areas. Lower output in West Bengal is due to lesser yield from the popular Pukhraj variety.

An FE analysis indicates that retail prices have risen sharply in most metros during the last two months. In Delhi, the retail prices have jumped to R17 a kg from R9 two months back. With the exception of Bangalore, all other metros have seen a sharp rise in prices.

According to an official estimate, potato production is estimated in excess of 43 million tonne. UP and West Bengal account for close to 60% of the country’s total potato production. Traders say prices are expected to moderate during the next few weeks, as the rabi crop has started entering the market.

Meanwhile, potato prices declined by R7.20 to R1,059 per quintal in futures trade on Wednesday, as traders sold their positions with the expectation of increase in supplies.

At the Multi Commodity Exchange, delivery for the May contract fell by R7.20, or 0.67%, to R1,059 per quintal. Delivery for the June contract declined by R4.70, or 0.41%, to R1,024.50 per quintal.

Traders say the prices are unlikely to rise further owing to a steady arrival of the crop from UP and West Bengal. Other key potato producing states are Punjab, Uttarakhand, Karnataka and Maharashtra. More than 60% of the potato crop is raised in the Rabi season, which would be harvested in April and May.

It is estimated that 61.47% of the potato production is used for table purpose, 21% as seed, 0.5% is processed and only about 0.03% is exported. Close to 17% is lost in post-harvest handling, marketing and storage.

Potato exports from India are negligible. Fresh potatoes are mostly shipped to Sri Lanka, UAE, Mauritius, Nepal, Singapore, Maldives, Kuwait, etc.

India, however, holds the fifth place in potato production after China, Russia, Poland and the US.

The Financial Express, 26 April, 2012, http://www.financialexpress.com/news/potato-prices-rising-due-to-lower-supplies/941543/0


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