Potato prices rise sharply as cold storage supply hits market

Potato prices have climbed up sharply by about 25 per cent last week but officials see nothing unusual about it.

Retail potato prices in most city markets ranged between Rs 18 and Rs 20 a kg, up from Rs 14-15 since the beginning of the week.

"Till now, the potato arriving in markets were from farmers' storages which have exhausted. The crop is now beginning to arrive from the cold storages which have caused the price rise," West Bengal Cold Storage Association (WBCSA) president Patit Paban Dey told PTI.

Potato prices have also shot up sharply in neighboring Odisha as well as a few other states.

For each kilogram of potato coming out of the cold storages, there will an additional price load of Rs 4-5 a kg due to the cost involved in storage and that got added to the prevailing price, he said.

The panchayat poll, set to be held in May 14, has created a crisis in availability of labourers of cold storages which accounted for the price rise caused due to a sudden supply shortage in few markers.

Former president of WBCSA Ramapada Paul said cold storages are able to supply only a fraction of the demand due to unavailability of labourers who are unwilling to come owing to pending panchayat election.

An agri consultant in posta wholesale market, Sibu Malakar said retail price of potato should prevail at around Rs 20 a kg for the Jyoti variety unless supply hampers in the short run and demand from other states jumps sharply.

The price movement is not due to lesser production of potato in Bengal which was at about 100 lakh tonne, 10 per cent lower than previous year's crop -- but production in other potato producing states suffered more.

State agri marketing minister Tapan Dasgupta said his department was keeping a watch on the situation for any possible hoarding and will take all necessary action if the price volatility rises.

He also said they want to strike a balance to keep the interest of the potato farmers also as in last year they posted huge loss as price realisation was not numerative.