Potato Prices Double Over A Month.

There has been a hike in potato prices in recent weeks, observers say this is till the next season's crop arrives.

The reason for now is a delay in harvesting of the new-season crop and reduced supply. According to data from the Nashik-based National Horticultural Research and Development Foundation showed wholesale potato prices have almost doubled at the Agra mandi, Uttar Pradesh, one of the country's largest producing centres, to Rs 11 a kg from Rs 5.70 a kg in early October.

An observer said that the average cost of potato cultivation is estimated at Rs 5 a kg. Considering cost of storage, transportation and loss in quantity, the break-even price should be Rs 7-8 a kg. Any price below this level is a loss to farmers.

Unseasonal rainfall in October month had benefited the sowing of potatoes, because of the required soil moisture. Including West Bengal and UP, while harvesting of the early rabi crop has begun in a small way, sowing is still on in major growing areas.

Ajit Shah, president, Horticulture Exporters Association said "Therefore, the spurt in potato prices is a temporary phenomenon. If farmers do not get a little higher than their cost of production, they would stop sowing next time."

According to the data from the National Horticulture Board showed India's total potato output at 42.17 million tonnes in marketing season 2014-15 as compared to 41.55 mt last year, despite a marginal decline in the sowing area at 1.99 million hectares versus 1.97 mn ha in 2013-14 and a senior official said that, according to the Shimla-based Central Potato Research Institute, the crop has been normal so far this season. A clear picture will emerge by the first half of December.

Source: http://www.business-standard.com