Potato prices in Deesa (Gujarat) at 10 year low

The potato capital of Gujarat - Deesa is facing acute price crisis with cost of the vegetable dipping to the lowest in a decade. The potato growing farmers and wholesale merchants are crying hoarse over the excess supply of potato from Agra, which has led to fall in prices. It is believed that the Deesa potato market is staring at a loss of Rs400 crore. But this has not affected prices in the retail market.

Ganpatlal Kachchhava, president of Deesa Cold Storage Association said, “Nobody is ready to buy the vegetable even at a price of Rs3 per kilogram. This will spoil our Diwali. Favourable weather conditions have ensured a bumper potato crop here and also in Agra region. Deesa has around 72 cold storages, which is the maximum in the state. 1.50 crore bags of potatoes (each bag has 50 kg) are stored in Deesa.”

He further said the merchants had bought the potatoes at a high price of Rs100 to Rs130 per 20 kilograms. “Many farmers also avoided selling their produce expecting a bullish market. But in July 2011 the prices fell and now we are staring at a loss. Now, all the markets in the country including Gujarat are being flooded with potatoes from Agra and because of this, prices in the wholesale market have touched its lowest in the last 10 years,” he said. At present nobody is ready to buy 20kg of potato at Rs 60, which comes to Rs3 per kilogram.

“Merchants who bought the vegetable for Rs120 per 20 kg and stored it here are now staring at a 50 % loss. Moreover they will have to bear the cost of storage as well,” he said.

Kachchhava said an emergency meeting of all merchants has been called to discuss the situation.“We are also planning to make a representation to the state government as well.”