With potato prices ruling at Rs 20 a kg in retail in the domestic market, traders from Jammu and Kashmir have started importing potato from the two Line of Control (LOC) trade posts of Srinagar and Poonch. With zero import duty on import at the LOC trade points, Pakistani potato is cheaper than the Indian variety by 20% to 40%.

India's potato production is expected to be 33.5-34 million tonne this year, which is 10-15% less than last year. This is due to lower production in Bihar, West Bengal and certain parts of Uttar Pradesh. With a small crop to be harvested in Himachal Pradesh, Maharashtra and Karnataka in August, prices are expected to remain steady this year.

"A good bumper crop in Pakistan coupled with a stronger Indian Rupee against the Pakistani Rupee are creating opportunities for traders to import Pakistani potato," said Sachid Madan, director, Technico Agri Sciences (a subsidiary of the cigarette to hotel major ITC Ltd).

Indian traders imported 200-250 trucks (10- 15 tonne per truck) over the past two weeks through the Srinagar- Muzaffarabad and Poonch-Rawalkot trade posts.

"Higher prices of Indian potato made us start importing potato from Pakistan. We have started dispatching trucks to New Delhi's Azadpur mandi and markets in Punjab. The demand from Gujarat and Uttar Pradesh traders has also started coming in who intend to transport it via train," said Srinagar LoC Trade Union secretary and King Khan Trading Co owner Hilal Turki.

The weekly demand for white and red skinned potato in the Jammu and Kashmir market is over 100 trucks, he said.

"Hence there was sufficient stock to be sent to other states. White skin potato was being imported for Rs 8-9 a kg and the red skin for Rs 10-11. Compared to it the Indian white skin potato in wholesale were selling for Rs 12-13 and red skin like Lady Rosetta for Rs 16-17 a kg," said Pathankot-based trader Umesh Kumar.

On account of considerable price difference, import is expected to increase as many more traders are open to sourcing potato from Pakistan.

"Domestic potato prices are more than double than the previous year. To cater to the domestic market and processing industry we are interested to get the Pakistan potato," said Agra-based farmer, processer and exporter," Manesh Agarwal. He recently exported 120 tonne of processing variety of potato to Malaysia.

In New Delhi, potato prices in Mother Dairy Safal stores ranged from Rs 14 to Rs 15 a kg.