Potato, Tomato prices continue to skyrocket in India

Potato prices are rising, while tomato has briefly touched Rs 100 a kg in some neighbourhood markets in north India because of a supply glitch.

Tomato supplies have suffered following heavy rains in the north. Meanwhile, potatoes are being exported to Pakistan and the country's second-biggest producer, West Bengal is contemplating restrictions on allowing traders to supply the tuber to other states.

Potato prices have risen to Rs 40 - 45 in Bangalore.

Traders in Uttar Pradesh, the major supplier to the south are exporting potatoes to Pakistan, where prices have touched Rs 70 a kg.Last week, the Economic Coordination Committee of the Cabinet in Pakistan extended the date for dutyfree import of potatoes till November 15,and approved import of another 100,000 metric tonne of potatoes to arrest skyrocketing prices.

KR Krishna, a leading wholesaler of vegetables from Yeshwanthpur, Bangalore said the region receives potatoes from Uttar Pradesh, West Bengal and Madhya Pradesh. "At the wholesale level price of potatoes is hovering around Rs 23 -25 per kg. And at the retail level prices have shot up toRs 40 -45 in Bangalore. In Chennai, price is aroundRs 35 -40 per kg and so is it in Hyderabad. Prices will cool off hopefully once potato starts arriving from Hassan from second week of August-."Prices are also rising in Gujarat, Narendra Modi's native state. In Ahmedabad the wholesale price of good quality potato which was priced atRs 16 per kg earlier is now selling at Rs 21. At the retail end price is hovering around Rs 30 per kg. In Delhi and NCR, price of potato is hovering around Rs 30 per kg.

Pakistan's announcement last week on duty free import has enthused traders in Uttar Pradesh, the largest producer of the tuber. Last week, the price at the wholesale-level was Rs 16 per kg. Now it is Rs 18 per kg and traders indicate that prices may go up further. "I am sending 17 tonnes of potatoes per day according to the requirement of Pakistani buyers. I am getting good prices from Pakistan which is equivalent to the minimum export price (MEP) set by the government," said an Agrabased trader who did not want to be named. India has set an MEP of $450 tonne for potatoes.Even Sri Lanka is showing interest to buy Indian potatoes, said Patit Paban De, a leading potato trader from West Bengal. R P Gupta, director, National Horticultural Research and Development said, "Fresh potatoes which are arriving from hilly areas of Himachal Pradesh and Uttarakhand are now pricey. But potato prices will stabilise from September onwards."

India had produced 46.3 million tonnes of potato last year. While prices of potatoes have shot up in most parts of India, West Bengal chief minister Mamata Banerjee is mulling to stop intra-state movement of the tuber to arrest prices in her own state. In last one week wholesale price has gone up 7% in Bengal which has moved up prices at retail level. "If prices go up further then we will stop movement of potatoes from our state. CM has called ameeting on July 28 to review the situation and take a final call," said Arup Roy, state agri marketing minister. The state has 34 lakh tonnes of potatoes in cold storages.