Potato prices in India have recently surged by 30-40%, reaching Rs 24-25 per kilogram for the 'Jyoti' variety, primarily due to reduced crop yields and labor shortages during the Holi festival. The price hike is expected to recede to around Rs 20-21 per kilogram in the coming week, as labor availability stabilizes post-Holi celebrations. The premium 'Chandramukhi' variety of potatoes has also seen a price increase, touching Rs 30 per kilogram. Local market dynamics suggest that the election period may influence pricing due to political contributions, although industry officials discount this theory, attributing the rise to natural supply and demand factors.
In West Bengal, which is a significant contributor to India's potato market, the shortage of labor during Holi has impacted the loading and unloading of the crop, exacerbating the price increase. About 80% of the workforce in this sector comprises migrant laborers who return home for the festival, reducing the workforce available for handling the produce. However, as these workers return, the market is anticipated to stabilize, easing the prices. Weather-related issues, such as untimely rains and diseases like late blight, have also contributed to a projected 10% decrease in potato production, affecting supply and influencing market prices.
Overall, the national potato production for the 2023-24 crop year is projected to decline slightly to 58.99 million tonnes from the previous year's 60.14 million tonnes. This decrease is attributed to adverse weather conditions and reduced yields in key producing regions like Purba and Paschim Bardhaman and Purba Medinipur districts in West Bengal. Despite these challenges, the production in the Hooghly district has been robust, partially offsetting the overall decline in the state's potato output