KATHMANDU, Oct 26: Decline in production due to long stretch of drought, coupled with diseases in potato crop during last winter, have pushed down supplies, triggering a sharp rise in the price of potato in the market. Potato prices have almost tripled over the last six months due to slow supplies amid rising demands.
Govinda Sharma, chief of National Potatoes Development Program -- a government funded project -- said devastating drought, hailstorm and blight disease in potato farms in key farming areas, including Daman, Sindhupalchowk and Rupandehi, are the major factors behind the hike in potato prices.
“According to our estimates, the production of potato in the last harvesting season dropped by 15 to 20 percent as compared to the production recorded in the last fiscal year,” Sharma told myrepublica.com on Monday.
Due to lack of adequate stock in domestic cold stores, imported potato eased its way into the market. According to the Ministry of Agriculture and Cooperatives (MoAC), potato production stood at 2.08 million tons in 157,792 hectares of land in 2008/09, up from 2.05 million tons in 156,737 hectares of land in 2007/08. The production was 1.94 million tons in 153,534 hectares in 2006/07.
Sharma also opined that the impact of rise in potato prices in global market and soaring price of other vegetable items also led to the rise in potato prices. “Many consumers shifted to potatoes as other vegetables items became dearer in the market. This led to the rise in demands in the market which was already facing decline in supplies,” added Sharma. He further added that potato production suffered a major setback as a large stretch of arable land in Morang and Sunsari districts was devastated by Koshi floods last year.
The decline in supplies subsequently affected potato prices in the market. According to Kalimati Fruits and Vegetable Market Development Board that manages Kalimati wholesale market, potato prices skyrocketed in the last week of October to reach the level which is almost triple of what was recorded in the last week of April. Retail price of potatoes has risen to Rs 50 per kg in the last week of October from Rs 20 recorded in the last week of April.
Rising prices and declining supplies from domestic farms have prompted traders to import potatoes from China and Bhutan. India has also been supplying potatoes to Nepali markets.
Bharat Uprety, a potato wholesaler at Kalimati market, said shortage of potatoes in this lean season is the main reason behind the rice in potato prices in the market. He also informed that supplies from India, China and Bhutan account to almost 50 percent of total supplies to local markets. “However, the share of imported potatoes in domestic market is gradually decreasing with the arrival of off-season potato harvest in the market,” Uprety said.
At present, daily arrivals of potato in Kalimati market stand at around 10 to 12 tons, which is nearly half of the arrivals during the harvesting season.
Uprety said the share of imported potatoes would soon decline to 30 to 40 percent after new harvest of potatoes, mainly from the Kathmandu Valley and other surrounding districts, starts arriving in market.
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