Potato prices ease after up to 40% jump in mid-March; can consumers expect more relief ahead?

As India prepares for the summer season, the consumer may get some relief in the form of lower potato prices after a surge to Rs 24-25 per kilogram in the past fortnight owing to several factors. Many analysts anticipate a reduction in the rates of potatoes, a common staple food used across the length and breadth of the country, on the back of normal rabi season supplies.

In mid-March, retail prices of the Jyoti variety of the commodity saw a spike of 30-40 per cent amid a shortage of production and unavailability of labour due to festivals such as Holi. On Thursday, the price of the commodity was recorded at around Rs 10.75 per kilogram in the national capital. 

Analysts expect the wholesale prices to ease further from the current Rs 15-18 per kilogram before a rise in the coming months.

Potato prices are falling due to the rapid arrival of the new crop that began in January, according to Tushar Agarwal, Head of Agrawal Research.

"Potato prices typically fall until April before rising again in May… Good quality potato prices may rise to Rs 30 per kg (in May), which was Rs 15-18 per kg in March,” he said.

Agarwal also said that prices of good quality potatoes could rise to Rs 30 per/kg in the next quarter, up from Rs 15-18 per kilogram in March.

“Growers in Uttar Pradesh expect a 7.7 per cent increase in potato production to almost 16.7 million tonnes from 15.5 million tonnes last year… In Gujarat also, yields are higher this year… Now new crop arrival has started in West Bengal, which is also posing pressure on prices,” said Agarwal.

"The UP government has assured farmers of procurement at a minimum support price of Rs 650 per quintal, but purchases haven't started yet,” he said.
Production of potato in 2023-2024 crop year

Potato production is expected to be lower in the 2023-24 crop year, according to the Department of Agriculture's preliminary output estimates.

National potato production for 2023-24 is estimated to be around 58.99 million tonnes, somewhat lower than the previous year's production of roughly 60.14 million tonnes.

Potato, a rabi crop, is sown around October-November and harvested in March-April.

Rabi crops such as potatoes are sown in the winter season, in contrast to kharif crops which are sown in the rainy season (June-September). Unlike kharif crops, rabi crops are not dependent on rainfall, allowing farmers to have more control over their cultivation.

With inputs from agencies