A surge in potato prices in the country is attributed to a sudden rise in export to Pakistan, helped by that country’s removal of import duty on the commodity.
Potato sold at Rs 1,415 a quintal in Agra a month earlier; it was Rs 1,670 a quintal on Thursday. The corresponding price in Kolkata was Rs 1,400 a quintal and Rs 1,600 a quintal.
Pakistan has had a big shortage of potato since the start of March. In April, The Economic Coordination Committee of the Cabinet, a key policy making body in Pakistan, decided to lift the tariff on import of 200,000 tonnes, to ease prices. With prices continuing on an upswing in the Ramzan month, a decision was taken on July 19 for a further 100,000 tonnes of import at zero duty, to be continued till November 15.
This week, though, export to Pakistan has reduced significantly, as their government has again imposed a duty on import. “Since August 1, potatoes are not going to Pakistan, as the duty structure is not clear,” said Ajit Shah, president, Horticulture Exporters Association.
Between July 4 and August 4, India exported frozen potato worth $391,110 through ports, with Pakistan accounting for 18 per cent of the value, the second highest, according to data from Infodrive India. According to informal estimates, 2,000 tonnes of potatoes were exported to Pakistan daily through the Attari-Wagah land route.
Says Patit Paban De, a trader in this city: “Potatoes from West Bengal are not directly exported but as a huge quantity from UP, Gujarat and Punjab was going to Pakistan, there was a price rise in the past 15 days.”
In the retail market, prices shot up to Rs 22-23 a kg; in Odisha, it went as high as Rs 40 a kg, after neighbouring West Bengal restricted the movement.
Nearly 90 per cent of the crop in India is harvested between October and December. A small amount is harvested between August and September in parts of south India. Sowing is yet to begin in most areas.
In 2013-14, India exported 166,642 tonnes, valued at nearly $35 million. Sri Lanka, UAE, Maurititus, Nepal, Singapore, Maldives and Kuwait are the major buyers.
"A significant amount of potato has been exported to Pakistan recently, although compared to India's total production it is not a very huge quantity," said, R P Gupta, director, NHRDF. In 2013-14, India produced nearly 46 million tonne of potatoes.
According to informal estimates from traders, 2,000 tonnes of potatoes were exported to Pakistan per day through Attari-Wagah land route.
