This season potato prices in Indore's Choithram market have plunged to Rs 7-10 per kg much lower than the cost of cultivation at Rs 12-13 per kg, traders at the Choithram market said.
A drop in potato prices has lifted offtake by local chips manufacturing units, looking to increase procurement this season following better availability and lower prices. March-April is the main period for procuring chips quality potato by chips manufacturing units.
A potato trader from Choithram mandi said: "Enquiries from chips manufacturers have gone up sharply because prices are trading low and availability of potato is very good in the spot market. Last week I supplied 3 truckloads of supplies to local chips manufacturers."
In the Choithram market, daily arrival of potato have jumped close to 30,000 55- to 60-kg bags with supplies coming from Uttar Pradesh, Punjab, West Bengal and Punjab. Kailash Pawat, a supplier of potatoes to chips manufacturing units in Indore said: "Companies are demanding more potatoes this season because prices are low and demand for chips is growing year-on-year. So far I have supplied to 5 units."
[ Rs 100 = €1.10 ]