NORMAL PRODUCTION STABILIZE POTATO PRICES DURING 2010-11: PAU EXPERTS

LUDHIANA, JANUARY 25:-----

The harvesting of potato has started in Punjab and it will be in full swing by mid February. The model price of potato in important markets of the state, which was prevailing in the range of Rs 450 to 550 per q during Oct-Nov, 2010, declined to Rs.200-250/- per q during Jan, 2011, said Dr. J.S.Sidhu of Agricultural Market Intelligence Center, (AMIC) of PAU. Discussing probable reasons for this, Dr. Sidhu said that this may be due to premature harvesting of potato by farmers to take advantage of spring crops such as maize, sunflower, vegetables, etc. The premature potato have to sell immediately in the market as it can not be stored or used as seed resulting into increased supply ultimately leading to decline in the prices, he observed. However, in the markets of leading potato producing states like UP and West Bengal which accounts for about 75 percent of potato production in the country, the prices are still ruling in the range of Rs 300 to Rs 400 per quintal. Sharing the information from commodity future markets, Dr. Sidhu indicated that future prices of potato will be in the range of Rs. 575-700 per quintal during April to August, 2011.

According to the available information, the present condition of potato crop in country is quite good as there is no major attack of blight and frost which adversely affect the potato production, remarked Dr. Sidhu. The area and production in major potato producing states of country during 2010-11 is expected to increase marginally as compared to the last year, he added. The late blight disease is reported in some of the potato growing areas in Punjab, but according to experts it will not significantly affect the potato production in the state. The traders and farmers are expecting a good harvest. Traders are of the view that during main harvesting season comprising months of Feb and March, the potato prices may not increase significantly from the current price levels, projected Dr. Sidhu.

Under these conditions farmers have to take a decision regarding when to harvest and whether to sell potato immediately on harvest or to store for some time to get better prices. To forecast the potato prices, the AMIC of PAU analyzed the wholesale prices of potato that prevailed during 1999-2010 in important markets of Punjab, U.P. and West Bengal. After touching peaks in Oct-Nov, the potato prices start declining in the subsequent months and remain low up to mid April, observed Dr. Sidhu adding that due to storage of the crop for seed purpose as well to be released for consumption during the lean season, the prices may start moving upwards from April onwards. The AMIC is of the opinion that during this marketing season, the potato prices are expected to rule between Rs 250-350 per q during the months of Feb-March and will further increase by Rs 100 per quintal during the months of April-May. The farmers can keep this information in view while making their selling and storing decisions, said he.




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