Potato prices drop 55 percent, Farmers struggle with Rs 1800-2000 per quintal

Potato prices have dropped 55 percent in the last 20 days, from Rs 2600-2800 to Rs 1800-2000 per quintal, due to new crops from Karnataka. However, retail prices remain high at Rs 40-45 per kg, benefiting middlemen more than farmers.

Brijesh Chauhan

Published: Aug 5, 2024 - 15:37 Updated: Aug 8, 2024 - 18:38

Potato prices drop 55 percent, Farmers struggle with Rs 1800-2000 per quintal

In a surprising turn of events, potato prices have plummeted by 55 percent over the past 20 days, with the average wholesale price dropping from Rs 2600-2800 per quintal to Rs 1800-2000 per quintal. The influx of new potato crops from Karnataka has contributed to this decline. However, retail prices remain unaffected, with potatoes still selling at Rs 40 to Rs 45 per kg in the market, despite the drop in wholesale prices.

For the past two months, retail potato prices have been on an upward trajectory. Since May, prices have surged from Rs 25 per kg to Rs 45 per kg, but farmers have not reaped the benefits of this increase.

Middlemen taking advantage of the increased prices

Dungar Singh Khandauli, a potato farmer and cold storage businessman from Agra district in Uttar Pradesh, expressed his concerns to Rural Voice. He highlighted that while wholesale prices have fallen to Rs 1800-2000 per quintal, market prices remain around Rs 40 per kg. This disparity is allowing middlemen to profit significantly, while farmers receive only half of the market price.

Singh pointed out that after a slight improvement in potato prices this year, the recent drop has negated those gains. He noted that the arrival of new potatoes from Karnataka is just the beginning, with more expected from Uttar Pradesh and other states in the coming months, potentially driving prices down further.

Potato production decreasing continuously

The surge in potato prices earlier this year was largely attributed to reduced production and extreme heat impacting vegetable yields. Dungar Singh explained that the recent rise in potato prices is attributed to a decline in potato production this year and reduced vegetable yields due to extreme heat. He noted a continuous decrease in potato production nationwide, with Uttar Pradesh—the largest potato-producing state—seeing a 10 percent drop this year. Overall, national production fell by 5 percent. Government data reveals that potato production totaled 567 lakh tonnes in 2023-2024, a decrease of 34 lakh tonnes compared to 601 lakh tonnes produced in 2022-2023.

Farmers' Plight

Dungar Singh highlighted that despite high market prices for potatoes, farmers are not benefiting. In June, farmers received Rs 2400-2600 per quintal, but this has dropped to Rs 1800-2000 per quintal within a month. Meanwhile, market prices remain at Rs 40 per kg, meaning farmers earn less than half of this amount. The Union Ministry of Consumer Affairs' Price Monitoring Division reports the average retail price of potatoes at Rs 37.08 per kg, but farmers are receiving only Rs 18-20 per kg.

A Call for Government Intervention

Singh warned that low prices are driving farmers away from potato cultivation, pushing them towards other cash crops. He urged the government to establish a support price for potatoes, ensuring farmers receive fair profits and continue potato farming. Singh lamented that for the past three years, farmers have been selling their produce at a loss. The brief respite in May gave them hope for better prices, but the recent decline has dashed those hopes.