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LATEST NEWS UPDATES | Potato prices to fall on good stocks, new crop by Sandip Das

Potato prices to fall on good stocks, new crop by Sandip Das

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published Published on Oct 13, 2010   modified Modified on Oct 13, 2010

After a significant jump in retail price of potato in the last two weeks due to disruption of supplies on account of heavy rain in northern India, prices are all set to fall because of huge stocks with traders in Uttar Pradesh and West Bengal, the two biggest potato producing states and expected arrival of the new crop from Punjab next month.

Traders in Uttar Pradesh and West Bengal, who were sitting on huge stockpiles of potatoes, but could not sell them because of unabated rains are expected to liquidate their inventories ahead of Diwali. According to farmers from Agra, a key growing region, wholesale price of potato has already declined to Rs 550- 600 per quintal on Tuesday from Rs 700 per quintal last week.

“We have enough stocks to meet the current demand and there is no damage to kharif potato crop this year,” Rustom Singh, a potato farmer from Agra told FE.

Consequently, the retail price of potato in Delhi which has jumped from Rs 11 per kg in August jumped to Rs 16 per kg in the last two months is expected to decline in the next few weeks.

“Sowing of kharif potato has been completed and about 30-40% more area is expected to be sown this year compared to last year. Harvesting will start from October onwards,” Nashik-based National Horticulture Research and Development Foundation (NHRDF) said in its latest crop prospects report .

In Uttar Pradesh, the country's biggest producer of potato, more than 8.9 million tonne of potato was stored in cold storage in rabi 2009-10, of which almost 3.5-4 million tonne is still available with traders .

According to the agriculture ministry, in 2009-10 production of potato in Uttar Pradesh is estimated to be 12 million tonne while West Bengal produced more than 9.5 million tonne of potato. Uttar Pradesh and West Bengal produce close to 70% of the country's total potato production.

“With more area under kharif production, potato production in 2010-11 is expected to go up considerably,” an agriculture ministry official said.

Meanwhile, MCX March potato futures has dropped to Rs 596 a quintal on Tuesday, while the same month contract on NCDEX was quoted at Rs 567 per quintal. More than 60% of the crop is produced during rabi season harvesting for which starts around April .


The Financial Express, 13 October, 2010, http://www.financialexpress.com/news/Potato-prices-to-fall-on-good-stocks--new-crop/696657/


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