Rising Potato Prices in Odisha, Reasons, Trends, and Impact

What’s in today’s article?

• Why in News?
• Agro-climatic condition required for Potato cultivation
• Potato production in India
• Potato’s price rise
• Reasons for the Rise in Potato Prices
• Odisha’s Dependency on Potato Imports

Why in News?

Odisha government has blamed the West Bengal government for creating an artificial scarcity of potatoes.

Odisha has faced high potato prices for months, worsened by West Bengal's recent restriction on shipments due to rising prices in its own markets.

As a major supplier, West Bengal's actions have significantly impacted Odisha, which depends heavily on these imports.

Agro-climatic condition required for Potato cultivation

• Climate
  • Potatoes grow best in temperate climates with moderately cool temperatures during the growing season. The ideal conditions for growing potatoes are: 
• Temperature
  • The ideal temperature range for growing potatoes is 18–29°C during the day and 13–18°C at night. 
  • The optimum temperature for vegetative growth is 24°C, while the ideal temperature for tuber development is 20°C. 
  • Temperatures above 30°C can stop bulb formation. 
• Sunlight
  • Potatoes need at least six hours of sunlight per day, but they can also grow in dappled shade. 
  • However, growing in shade can result in smaller tubers and lower yields. 
• Soil
  • The potato can be grown almost on any type of soil except saline and alkaline soils.
  • Soils, which are naturally loose, offer least resistance to the enlargement of the tubers is preferred.
  • Loamy and sandy loam soils, rich in organic matter with good drainage and aeration are most suitable for cultivation of potato crop.
  • The soil with pH range of 5.2-6.4 is considered to be ideal. 

Potato production in India

• India’s Position in Global Potato Production
  • India is the second-largest producer of potatoes globally, after China.
  • Between 1991-92 and 2020-21:
    • Potato cultivationarea doubled from 11 to 22 lakh hectares.
    • Production tripled from 181.95 to 561.72 lakh metric tonnes.
    • Productivity rose by over 50%, from 16 to 25 metric tonnes per hectare.
• Potato Cultivation in India
  • Primary Season: Rabi (winter-spring).
  • Major Producing States: Uttar Pradesh, West Bengal, Bihar, Gujarat, Madhya Pradesh, Punjab, Haryana, Assam, Jharkhand, and Chhattisgarh.
  • Kharif Cultivation: Limited to Uttarakhand, Karnataka, Himachal Pradesh, Tamil Nadu, and Maharashtra.
• Top Producers in 2021-22:
  • Uttar Pradesh: 161 lakh metric tonnes.
  • West Bengal: 124 lakh metric tonnes.
  • These two states accounted for almost 50% of India’s total production of 533 lakh metric tonnes.

Potato’s price rise

• Seasonal Price Trends of Potatoes
  • Potato prices typically decline during the arrival of the rabi crop in winter and spring.
  • Prices usually rise during late summer and monsoon seasons.
  • In 2024, prices have remained consistently high across the country, including Odisha.
• Rise in Potato Prices: Nationwide Trend
  • Retail Prices (December 3, 2024):
    • Average: Rs 38.08 per kg.
    • 4.90% higher than a month ago.
    • 55.49% higher than a year ago.
  • Wholesale Prices (December 3, 2024):
    • Average: Rs 3,120.99 per quintal.
    • 5.24% higher than a month ago.
    • 69.63% higher than a year ago.
• Impact on Inflation and Economy
  • Potato contributes
    • 0.98404 to Consumer Price Index (CPI).
    • 0.27737 to Wholesale Price Index (WPI).
  • Price volatility impacts both consumers and the HoReCa (Hotel, Restaurant, and Catering) sector.

Reasons for the Rise in Potato Prices

• Production Decline: Potato production for the 2023-24 crop year (July-June) dropped by 5.6%, falling from 601 lakh metric tonnes in 2022-23 to 567 lakh metric tonnes.
• Reduced Cultivation Area: The area under potato cultivation decreased slightly from 23.32 lakh hectares in 2022-23 to 23.22 lakh hectares in 2023-24, likely due to low prices in the previous year, which discouraged farmers.
• Impact on Top Producers
  • Uttar Pradesh - Production fell from 201.3 lakh tonnes to 191.7 lakh tonnes.
  • West Bengal - Experienced a sharper decline, with production dropping by 15 lakh tonnes from 145 lakh tonnes in 2022-23 to 130 lakh tonnes in 2023-24.

Odisha’s Dependency on Potato Imports

• Odisha has low potato production due to unsuitable agro-climatic conditions (temperatures required: 15°C-25°C).
• The state heavily depends on imports, primarily from West Bengal, to meet its potato demand.
• Trade Flow: West Bengal typically sends 150-200 truckloads of potatoes to Odisha and Chhattisgarh.

Q.1. Why have potato prices risen in Odisha?

Potato prices in Odisha have surged due to reduced production in India, with key producers like West Bengal limiting shipments, creating an artificial scarcity.

Q.2. What is Odisha's dependency on potato imports?

Odisha relies on West Bengal for 150-200 truckloads of potatoes daily, as local conditions aren't ideal for potato cultivation, leading to dependency for meeting demand.

News: Hot potato in Odisha: why tuber’s high price has hit the state hard | National Horticulture Board