India to Allow Imports Due to Lesser Production and Continued High Prices for Potatoes
Given that it anticipates lesser production and continued high prices for potatoes in the foreseeable future, the Indian government is likely to permit the importation of potatoes from Bhutan. The Economic Times was informed that traders will soon be able to import limited quantities of the foodstuff. Typically, the nation imports potatoes from Brazil, Mozambique, and neighboring countries like Nepal and Bhutan.
This year’s production was impacted by weather-related damages in West Bengal and Uttar Pradesh, two important producing areas, which fueled the price spike.
Food inflation shot up to 9.4% despite a stabilizing base effect from the previous year, mostly due to the continued high cost of vegetables. Together, tomatoes, onions, and potatoes saw a 48.4% increase in inflation, with onions and potatoes leading the way.
According to an agricultural specialist quoted by the Economic Times, “prices of potatoes are expected to be firm for the next few months.” The analyst also stated that, in contrast to the usual tendency of November and December, the shortage of the tuber is likely to be noticed as early as October.
A report from a trader speaking for the same media outlet, “large farmers and traders are holding their stocks in anticipation of a price rise in the coming months.” This year has also seen a decrease in loading in cold storages.
Based on the Indian Agriculture ministry’s first advance estimate, potato output is predicted to be approximately 58.99m tonnes this year, which is less than the 60.14m tonnes produced last year.
Customers switched to potatoes as the cost of other green vegetables increased due to severe heatwaves that affected a big portion of the nation.
The Central Potato Research Institute has advised potato growers countrywide to be cautious as there is a high danger of fungal infection in the crop, which is known as late blight disease, due to weather variations.
Since last year, the government has permitted the unrestricted import of potatoes from Bhutan till June 2024. After China, India is the world’s second-largest producer of potatoes, with an output of 55m tonnes last year; the US and Ukraine come in third and fourth place, respectively.
