Potato prices surged four per cent in futures trading today to daily upper limit set by the exchange authority as traders enlarged their positions influenced by a firming trend in spot markets.
Restricted supply from producing regions in the physical markets due to heavy rains also supported the uptrend.
The potato prices rose to hit a daily upper limit of four per cent fixed by the exchange authorities to avoid any unwanted speculation in the prices.
The commodity for September month contract traded higher by Rs 13.40 or four per cent to Rs 353.70 per quintal in 860 lots, while August delivery was up by 10.40 or three per cent to Rs 357.50 per quintal in business volume of 130 lots.
Market analysts said increased buying by speculators following pick up in spot market demand due to the festive season led to the rise in potato prices in futures trade.
They said restricted arrivals from producing belts in Haldwani and Agra in the spot markets also put pressure on the trading sentiment.