W16 Potato Update: India's Potato Prices Surge Amidst Erratic Rainfall, and Russia's Potato Exports Surge in Q1-24

Published 2024년 4월 25일

In W16 in the potato landscape, potato exports from Russia increased by 1.8 times in Q1-24. Ukraine's wholesale prices fell due to quality issues, while Myanmar's prices dropped by half, causing severe losses for farmers. Lastly, India's potato prices surged due to erratic rainfall, increasing retail and wholesale prices. This price spike comes as major potato-producing states report lower output, with production expected to decrease in the 2023/24 season.

Russia's Potato Exports and Supply Surged in Q1-24

Potato exports from Russia surged in Q1-24, an increase of 1.8 times compared to the same period in 2023. The Executive Director of the Potato Union noted that surplus potatoes from the 2023 harvest at large agricultural enterprises were 140% higher than in 2023. New supply channels have emerged, including Serbia purchasing seed potatoes and Türkiye entering the market as a buyer. The Ministry of Agriculture anticipates an abnormally hot summer, potentially leading to drought conditions, which could raise costs for irrigation, fuels, and lubricants.

Wholesale Potato Prices in Ukraine Slide Amidst Quality Issues

Ukrainian potato producers face a significant decrease in demand, leading to lower prices for the second time. Despite having plenty of potatoes available, buyers are not purchasing them due to quality complaints. As of April 18, wholesale potato prices in Ukraine dropped by USD 0.30 per kilogram (kg) to USD 0.43/kg (UAH 12/kg to UAH 17/kg), a 14% week-over-week (WoW) decrease. While prices are still higher than last year's, the market suggests they may continue to fall.

Declining Potato Prices in Myanmar While Farmers Face Severe Losses

Potato prices inMyanmarhave dropped by about half from USD 1.91 to 2.15 (MMK 4,000 to 4,500) to USD 0.95 (MMK 2,000) inApr-24, causing severe losses for many farmers in southern Shan State. Farmers have invested significantly in water, fertilizer, and labor to grow potatoes but are able to recover their expenses. The price gap has also increased investment costs, such as fuel, as farmers plant potatoes twice a year, further straining their finances.

India's Potato Prices Surge Due to Yield Drop from Erratic Rainfall

Erratic rainfall in Nov-23 in India has reduced potato yields, leading to a sharp price increase. Retail prices rose to USD 0.31/kg (INR 26/kg), an increase of 10.18% month-on-month (MoM) and 32% year-over-year (YoY). Meanwhile, wholesale prices surged to USD 23.33/100kg (INR 1,944/100kg), an 11.44% MoM and a 33.18% YoY increase. Major potato-producing states like Uttar Pradesh and West Bengal have seen lower output, attributed to reduced production and farmers holding back stocks in anticipation of further price hikes. The Ministry of Agriculture and Farmers Welfare estimates potato production for the 2023/24 season to decrease to around 58.99 million tons, down from 60.14 million tons the previous year.