Potato prices have dropped by about Rs 100 a quintal over the last one month on account of a higher release of stocks from cold storages.
Wholesale prices of the tuber (Jyoti variety) that were ruling around Rs 1,050-1,100 in the first week of September have now dropped to Rs 950.
Prices were ruling around Rs 1,300 in early July.
According to Patit Paban De, Member, West Bengal Cold Storage Association, nearly 62 per cent of the potatoes kept in cold storages have been released into the market till date.
“This year, close to 51 lakh tonnes of potatoes were stored in the 403-odd cold storages across the State.
“Nearly 32 lakh tonnes of potatoes have been released so far, compared with just about 55 per cent last year.
“A good and timely release has helped bring down prices,” De said.
Low production
Potato prices increased at the beginning of this year primarily due to lower production.
Production dropped to around 85 lakh tonnes in the 2011-12 season ending June against 95 lakh tonnes a year ago.
Despite the lower production, prices have been spiralling downwards due to the West Bengal Government’s restriction on export of potatoes to other States.
“The ban on the launch of new Tarakeshwar potato contracts by the Forward Markets Commission also helped in the easing prices in the spot market,” he said.
Prices will likely remain stable around these levels during the rest of the year, De said.
Last year, farmers held on to stocks expecting to gain higher prices. This lead to piling up of stocks in cold storages that later lead to a supply glut during the latter part of the year.
“This year, however, with a good quantity of potatoes already having been released from cold storage, we do not expect a supply glut.
We do not expect prices to crash. It (prices) is likely to remain steady around these levels,” De said.