Potato prices to remain firm till November (India)

With prevailing prices of potato ruling at Rs 18-20 kg, the potato seed companies are expecting the acreage to increase by 5-6% from 16 lakh hectares in 2008-09. Experts say this could double potato seed prices during the rabi season.

"For the past few years the area sown under potato has remained same, but this year we expect an increase in acreage by 5% in Uttar Pradesh, West Bengal and Bihar.With potato fetching a better price this year compared to the previous years a number of farmers who had either left their land barren or gone for sowing of other crop will come back, "said Sachid Madan, Director, Technico Agri Sciences Ltd a subsidiary of ITC Ltd in Chandigarh on Thursday.

In 2007-08 the potato production in the country was at 305 lakh tonne which fell to 260 lakh tonne in 2008-09. The fall in production was largely due to an increase in temperature during the bulking stage of potato. The crop in north-India including Punjab, Haryana and West-Uttar Pradesh had a bumper crop. However, in other states including Maharashtra, West Bengal there was a loss in the crop which led to a downfall of 15-20% of the overall crop.

Coupled with it delayed rainfall and fear of the late blight made farmers in Karnataka and Maharashtra to shift to other crops like maize and ginger this year. The early potato crop is expected to arrive in the market by November and not in October this year.

"We expect the bullish trend of prices to continue till November after which the market may fall when the crop starts arriving,"said Mr Madan.