Potato declines due to demand

Posted By: Religare
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Potato declines due to demand
On May 16, 2011, the prices of potato for the July contract fell by Rs 7.90, or 1.7% to Rs 487 per quintal, with a business volume of six lots at the Multi Commodity Exchange (MCX) since the traders reduced their holdings tracking the slow local demand.

The potato for the June contract potato shed Rs 2.90, or 0.53% to Rs 539.50, with an open interest of a single lot at the MCX.

Moreover, the sufficient stocks holdings due to the higher supply in the spot market also influenced the prices.

Meanwhile, the country is ranked 5th in potato production after China, Russian Federation, Poland and Ukraine. The productivity of potato in India is about 16-19 tonnes/ha vis-À-vis that of European countries and USA, i.e 30-40 tonnes/ha.

There are four-potato export zone in India viz. in UP, Punjab, MP and West Bengal. The major potato markets in UP are Agra, Hathras, Kanpur, Meerut, Farrukkhabad; Jalandhar, Ludhiana, Phul and Patiala in Punjab; Ujjain, Indore and Dewas in MP and Hoogly, Burdwan and Howrah in West Bengal.

Potato is the world's fourth important food crop after wheat, rice and maize owing to its great yield potential and high nutritive value and accounts for nearly half of the worlds annual output of all root and tuber crops.

Read more about: potato, commodities, mcx
Story first published: Tuesday, May 17, 2011, 13:30 [IST]
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