Poor quality, supply chain issues push potato price up to 40 again
Times of India | 10 December 2024
Kolkata: Supply chain disruptions and poor quality products again pushed up potato prices on Monday, within four days of the rates dipping slightly on Thursday. The Jyoti variety, the prices of which had inched down to RS 38 a kg a couple of days ago, was back to being sold at Rs 40 a kg. The Chandramukhi variety continued to cost Rs 45 a kg, though the price had gone down to Rs 42 a kg for a day last week.
Wholesale prices, which peaked at Rs 1,750 per 50-kg bags during last week's strike, gradually eased to Rs 1,600 per 50-kg bags and further to Rs 1,570 per 50-kg bags on Monday. But poor quality potatoes—over 15% potatoes in sacks deemed unsellable—spiked the effective cost of saleable produce. Moreover, the UP variety, which was expected to narrow the demand-supply gap, only began trickling into the market, making no difference to the prices. The Punjab variety, a new crop, is also being sold at a steep Rs 60 per kg.
Sukumar Samanta, a large-scale trader from Singur, however, predicted a potential dip in wholesale prices starting Tuesday. "We are selling at govt-fixed rates, but some retailers are not cooperating. Additionally, abnormal weather patterns have reduced the available stock," he said.
Bengal, the country's second-largest potato producer after Uttar Pradesh, faced production setback due to two successive spells of unseasonal rain, which forced farmers to replant the crop. "This year, production will be lower, and with increased cultivation costs, prices are unlikely to stabilise any time soon," said a trader from Singur. State agriculture marketing minister Becharam Manna also pointed at an alleged nexus between certain retailers and traders. "The govt is monitoring the situation closely and will take action at the right time," he said.
The various reasons notwithstanding, pricey potatoes are taking a toll on consumers' kitchen budget. "Winter vegetables remain costly, and potato, a staple, is no longer affordable," said Aniruddha Ghosh, a Barisha-based ad film-maker. Retailers are apparently finding it tough to explain the price fluctuations to buyers. "Customers are frustrated. They don't understand why prices are rising, and explaining the high discard rate isn't easy," said Sujit Ghosh, a potato seller at Behala Purana Bazar.
Some traders attributed the price rise to a rapidly depleting stockpile and erratic weather. "There is also a significant outflow of potatoes to other states, despite govt restrictions, which could further strain local supply," said a source at the Ratanpur potato hub.