Bhubaneswar: Despite India being the second largest potato producer, the Central government is expected to import the vegetable from Bhutan as it expects prices to increase in the coming days due to lower production.
A report by The Economic Times quoted a senior government official, who did not wish to be identified, as saying that apart from Bhutan, the Indian government is also exploring imports from other countries.
The official said that soon the government will allow traders to import small quantities of potatoes. India usually imports potatoes from neighbouring nations including Bhutan, Nepal or from Brazil and Mozambique.
Why potato prices may increase
India is the second largest producer of potato after China. However, key potato producing states – West Bengal and Uttar Pradesh – witnessed inclement weather this year which has damaged the production and that has fuelled the price surge.
“Prices of potatoes are expected to be firm for the next few months,” the report quoted an agricultural analyst as saying, who also informed that the shortage of the vegetable is likely to be felt as early as October unlike the general trend of November-December.
The report also quoted a trader as saying, on condition of anonymity, that large farmers and traders are already holding their stocks in anticipation of a price rise in the coming months. “Loading in cold storages also saw a decline this year,” the trader said.
Potato output in 2024
As per the first advance estimate of the agriculture ministry, potato output is expected to be around 58.99 million tonnes this year, lower than about 60.14 million tonnes last year. Potato farmers in India have been warned by the Central Potato Research Institute of a high risk of late blight disease, a fungal infection, in the crop due to changes in weather conditions.
Food inflation soared to 9.4 per cent, driven primarily by the constant high prices of vegetables. Inflation in tomatoes, onions and potatoes together rose to 48.4 per cent, led by onions and potatoes.
Last year, the government had approved importing potatoes from Bhutan without any licence till June 2024. In 2022-23, the country purchased fresh or chilled potatoes worth $1.02 million from overseas.