Potato prices in India have declined early in the season, with wholesale rates in key mandis dropping sharply over the past month due to oversupply. Higher market arrivals, combined with large volumes of old stock still held in cold storage, have led to weak prices and distress sales by growers. Traders expect prices to remain under pressure through this month, with a possible recovery from next month as more produce moves into storage and arrivals slow.
Market participants point to old potatoes still lying in cold storage as the main factor behind the downturn, even as fresh harvests enter the market. Expectations of a larger crop this season, supported by favourable weather so far, are also weighing on prices.
In Agra, a major mandi in Uttar Pradesh, wholesale prices fell over the past month from ₹900 to ₹1,250 per quintal (US$11 to US$15 per 100 kg) to ₹500 to ₹650 (US$6 to US$8). In Kolkata, prices declined from ₹1,500 to ₹1,550 (US$18 to US$19) to ₹1,100 to ₹1,200 (US$13 to US$14) per quintal. Indore saw rates drop from ₹500 to ₹1,400 (US$6 to US$17) to ₹300 to ₹900 (US$4 to US$11), while Delhi mandis reported a fall from ₹800 to ₹1,400 (US$10 to US$17) to ₹300 to ₹900 (US$4 to US$11). In Ludhiana, prices eased from ₹1,000 to ₹1,200 (US$12 to US$14) to ₹700 to ₹750 (US$8 to US$9) per quintal.
Lower wholesale prices have filtered through to retail markets. Potatoes that sold for ₹20 to ₹25 per kilogram (US$0.24 to US$0.30) last month are now trading at about ₹13 to ₹20 per kilogram (US$0.16 to US$0.24).
Deepak Kumar, a potato trader in Agra, said arrivals had remained strong and prices had fallen quickly due to the availability of last year's stock alongside new supplies. Vinesh Kumar, a trader at Delhi's Azadpur mandi, said daily consumption was around 90 to 100 trucks, while arrivals were running at 130 to 140 trucks, creating a supply overhang.
Cold storage operators confirm delayed clearing. Govind Kajaria of the West Bengal Cold Storage Association said facilities that normally empty by November 30 still held around 5 million bags. Hasmukh Jain of the Madhya Pradesh Cold Storage Association said storage facilities that usually clear in November may only do so by mid-January. He added that older stock moved into markets faster in December due to decay concerns, adding to supply pressure. He said mandi prices were currently ₹5 to ₹6 per kilogram (US$0.06 to US$0.07), while potatoes for chips were trading at about ₹8 per kilogram (US$0.10).
R P Gupta, former director at the National Horticulture Research and Development Foundation, said favourable weather could lift production by about 5 per cent this year, further influencing price expectations. Output stood at 58.1 million tons in 2024–25 and could exceed 60 million tons this season.
Growers report prices below production costs. Batuk Narayan Mishra from Uttar Pradesh said farmers were receiving ₹5 to ₹6 per kilogram (US$0.06 to US$0.07) against costs above ₹8 (US$0.10). Traders expect some stabilisation from next month as supplies shift into cold storage and mandi arrivals moderate.
Source: Business Standard
