W14 Potato Update: Potato Prices in India Surged Amid Supply Shortage, Bangladesh Braces for Production Decline in 2024 Due to Weather Challenges

Published Apr 9, 2024

In W14 in the potato landscape, India saw a sharp increase in potato prices, with the 'Jyoti' variety rising by 30 to 40% due to lower yields and a labor shortage during Holi. Prices are expected to drop within a week. In Bangladesh, adverse weather conditions led to a 20% YoY decrease in potato production, causing prices to spike potentially. Türkiye's earliest potato harvest in Adana commenced, with potatoes sold in the field for USD 0.53/kg. Lastly, Greece benefits from favorable weather conditions, positioning its potato production favorably for European consumers amidst shortages in other countries.

India's Potato Prices Surged in W14 Due to Lower Yields and Labor Shortages

During W14, India experienced a significant surge in potato prices, with the 'Jyoti' variety rising by 30 to 40% to USD 0.29 to 0.30 per kilogram (kg) over the last two weeks due to factors like lower crop yields and a labor shortage during the Holi holidays. These prices are anticipated to decrease and reach USD 0.24 to 0.25/kg within a week. The widely sold 'Jyoti' variety and its variants saw a spike, while the premium 'Chandramukhi' variety reached USD 0.36/kg. Some local shopkeepers and markets linked the price hike to the upcoming Lok Sabha elections, suggesting traders must donate to political parties, passing on the costs to customers. However, industry officials dismissed this explanation.

Potato Production Decline in Bangladesh Sparks Supply Shortage Concerns

Bangladesh is experiencing a significant decrease in potato production due to adverse weather conditions and premature selling by farmers, resulting in an estimated drop of at least 20% year-on-year (YoY) in 2024. This reduction has caused potato prices to spike, potentially exceeding USD 0.46/kg. As Asia's third largest potato producer, this poses a supply shortage concern. Moreover, farmers selling at least 30% of their potatoes prematurely further contributed to the production gap. During W14, farm-level prices have already reached USD 0.25 to 0.29/kg, up from the maximum of USD 0.14/kg in 2023, with prices in Dhaka currently at USD 0.41/kg.

The Earliest Potato Harvest Begins in Türkiye's Adana Region

The earliest potato harvest in Türkiye has commenced in Adana, with the first season's potatoes sold in the field for USD 0.53/kg. In 2024, approximately 300 thousand metric tons (mt) of yield are anticipated from potatoes planted across 6.6 thousand hectares (ha), averaging 0.4 mt/ha. Adana's Provincial Director of Agriculture and Forestry stated that potato production increased by 10% YoY in 2023, reaching 220 thousand mt over 6 thousand ha in Adana. Despite ranking 10th in potato production nationally, Adana leads in the earliest harvests.

Greek Potato Production Thrives Amid European Market Deficits

The recent cold days and sufficient rainfall in Peloponnese and Central Greece have contributed to the healthy ripening of potato tubers without deformities, positioning Greek production favorably for European consumers. Meanwhile, drought issues in Spain, France, and Italy are leading to a growing market deficit, which is expected to worsen during the summer harvest in France. Despite the devaluation of the Egyptian currency and reduced import costs, the Greek market remains unaffected, with local potatoes competitively priced and preferred over imports at retail. This ensures the continued prominence of Greek potatoes on the Easter table, dispelling concerns about losing market share to cheaper imports.