Tarkeshwar potato touches upper circuit on crop loss

March contract gained 5.45 per cent to Rs 520.90 a quintal on MCX.

The Tarkeshwar variety potato hit the upper circuit on Wednesday on the Multi Commodity Exchange (MCX) on speculation the recent rains across the country has damaged the crop in Agra and West Bengal.

Tarkeshwar potato for the March delivery on the MCX gained 5.45 per cent to close the day at Rs 520.90 a quintal, while the prices of its April and May contracts gained 5.52 per cent and 3.81 per cent, respectively, to close today at Rs 520 a quintal and Rs 523 a quintal from the Tuesday's close of Rs 492.80 and Rs 503.80 a quintal, respectively.

The prices of non-Tarkeshwar potato have also gone up significantly in the futures market, with the March contract up by 3.28 per cent to Rs 585.10 a quintal today from Rs 566.50 a quintal on Tuesday.

The prices of April and May deliveries too perked up 3.46 per cent and 3.42 per cent to Rs 577 a quintal and Rs 593 a quintal, respectively, on Wednesday as compared with Rs 557.70 and Rs 573.40 a quintal, respectively, on Tuesday.

In the Mumbai spot market, however, potato prices declined by Re 1 a kg to settle on Wednesday between Rs 5.50-6.50 a kg as against Rs 6.50-7.50 a kg on Tuesday.

Arrivals doubled in Mumbai on Wednesday to 1,600 trucks as against the normal way-in of 800 tonne. Mumbai consumes about 800 tonne of potato each day.

"Its premature to comment on the quantum of crop damage, as the harvesting in Agra has not yet started in full swing," a local trader said.

This year, the colour of potato would definitely change due to delayed rains and if the rainwater was not properly drained, he added.

Experts are of the opinion that Agra has not been affected at all. But, blight that has struck potato in West Bengal may hit the prospects of a bumper crop in the state, they opine.

Blight is a disease that does not create havoc in crop, but drastically brings down yield roughly up to 20-25 per cent, depending on the size of damaged crop area.

"It is early to ascertain the quantum of damage farmers would have to bear, but the crop has been affected badly due to late rains," said a trader in Kolkata.

The total area under potato cultivation this year was up by about 25 per cent to 18-20 lakh hectare compared with 15 lakh hectare last year. Prior to a fresh bout of lower output estimates, the country's total potato production was expected to be higher at around 30 million tonne, up by 4 million tonne over the previous year's production and about 5 million tonne above normal consumption.