Safal National Exchange of India Limited

Bangalore

Potato Profile

Safal National Exchange of India Limited

Safal Market, Whitefield-Hoskote Highway
Bangalore – 560 067
Tel: +91-80-25053000, Fax: +91-80-28457382
e-mail: info@snxindia.com, Web: www.snxindia.com
 Content Sheet
Page
Particulars
No.
I. Global scenario 3
World potato trade 4
II. Indian Scenario
1.0 Potato production in India 5
2.0 Potato producing seasons 5
3.0 Potato producing states 6
3.1 Potato production in Uttar Pradesh 6
3.2 Potato production in West Bengal 7
3.3 Potato production in Bihar 8
3.4 Potato production in Punjab 8
3.5 Potato production in Karnataka 9
4.0 Major trading centers 11
5.0 Marketing channels for potato 12
6.0 Arrivals and dispatch from producing regions
6.1 Agra 13
6.2 Indore 14
7.0 Arrival and Distribution pattern at major
consumption markets
7.1 Mumbai 16
7.2 Bangalore 16
7.3 Hyderabad 16
7.4 Chennai 17
8.0 Price analysis
8.1 Seasonality in potato prices 18
8.2 Price variation b/w grades 20

2
 Global Scenario
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. With an annual global
production of about 300 million tons, potato is an economically important staple
crop in both developed and developing countries.

1.0 Global Production:

The world produced about 321.97 million tons of potatoes from about 18.65 million
ha land with an average productivity of about 17.26 tons per hectare during 2005.
The following graph depicts the trend in world’s area and production of potato.

Trend in world area and production of potato

19.70 335.00
19.50 330.00

Million tons
19.30
Million ha

325.00
19.10
320.00
18.90
18.70 315.00

18.50 310.00
2001 2002 2003 2004 2005

Area (Million ha) Production (Million tons)

Source: Food and Agriculture Organization

World Potato Trade
Only 2 to 3 per cent of about 300 million tons of world potato is traded
internationally. The export and import of potato mainly take place within
European countries i.e. the Netherlands, Germany, Belgium-Luxembourg,
France, Italy; and five other countries i.e. Canada, the USA, Egypt, Turkey and
Cyprus account for 80 per cent of potato export trade. The Netherlands, the USA
and Canada are the world leaders in the production and export of processed
potato products.

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India’s contribution to world potato trade is hardly about 0.3%. About 2- 4% of world
potato production is traded internationally while India's share in world export of
potatoes is about 0.5% vi -a-vis India's 7.7% share in world output. India exports
around 3 lakh tons of potato to various countries in different forms. Potato is mainly
exported in fresh form, seed potato and processed potato. Nepal, Sri Lanka, United
Arab Emirates and Mauritius are the major destinations for fresh potato. These
countries totally imported around 97% of the fresh potato. The major destinations for
Indian seed potatoes are Nepal, Sri Lanka and United Arab Emirates.

Processed potato product includes frozen potato, dried potato chips, chips fried
wafers, potato flour etc. The major destinations for the processed potato products
from India are Sri Lanka, United Arab Emirates, Maldives, United States of
America, Mauritius, Nepal and Oman. These countries imports around 97% of
total processed potato products from India in quantitative terms.

Indian scenario
Potato is one of the major vegetable cultivated in India. Potato is grown in about
23% of the total area under vegetables and its share in total vegetables
production stands at 29%. On an average India produces about 270 lakh tons of
potato annual bases.

India - Potato area and production trend

15 292
Area ( Lakh Hectares )

14 272
Production ( Lakh

13 252
Tons )

12 232
11 212

10 192

9 172
1995- 1996- 1997- 1998- 1999- 2000- 2001- 2002- 2002- 2003- 2004- 2005-
96 97 98 99 00 01 02 03 03 04 05 06
Season

Area Production

Source: Department of Agriculture

4
From the above chart it is evident though there are volatilities in area and
production trends over the years both area as well as production is expanding at
a gradual phase. The CAGR growth in area under potato is about 1.5% and
production at about 2.4%

Potato Production Seasons:

In India potato is grown in three seasons as kharif, winter and summer crop.
Season % to total production
Winter (October-March) 80
Summer (April-July) 8
Kharif (July to October) 12

From the above table it is clear that major portion of the countries potato
production is taking place in the winter season.

Harvesting Calendar
State Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Uttar
Pradesh
West
Bengal
Bihar
Punjab
Madhya
Pradesh
Karnataka
Note:
Sowing Season
Harvesting Season

Major Varieties
¾ Kufri Chandramukhi
¾ Kufri Jyoti
¾ Kufri Badshah
¾ Kufri Himalani
¾ Kufri Sindhuri
¾ Kufri Lalima

5
State Wise Potato Distribution
Potato is cultivated in almost all the states. Uttar Pradesh, West Bengal, Bihar,
Punjab, Madhya Pradesh, Gujarat, Karnataka are important potato growing
states in the country. Uttar Pradesh and West Bengal together contribute for
more than 70% of country’s potato production

Statewise Share of Potato Production in India

2.41
2.93

2.96 7.77

3.23
37.01
3.25

5.28

7.40

27.76

Uttar Pradesh West Bengal Bihar Gujarat

Others Madhya Pradesh Assam Punjab
Karnataka Others

Source: NHRDF

Potato production in Uttar Pradesh

Uttar Pradesh is the largest potato producing state contributing to 40% of
country’s potato production. Potato is mainly grown during Rabi season.
Production ranges between 90 to 100 lakh tons.

6
 Source: NHRDF

Potato in Uttar Pradesh is cultivated in almost all the districts. However production
is more concentrated in western part of Uttar Pradesh. Agra, Hathras, Aligarh,
Mathura and Frizabad are the major potato producing belt in western part of UP.
District Production ( Tons ) % Share
AGRA 880000 9.0
FARRUKHABAD 857783 8.8
FIROZABAD 771587 7.9
KANNAUJ 758941 7.8
HATHRAS 672583 6.9
BADAUN 428339 4.4
MORADABAD 274270 2.8
MAINPURI 266272 2.7
MATHURA 250166 2.6
ALIGARH 246055 2.5
BARABANKI 236416 2.4
ETAWAH 220587 2.3
KANPUR N. 220530 2.3
ALLAHABAD 199851 2.1
HARDOI 198687 2.0
The above table indicates the main districts which contribute to more than 60% of
the states potato production.

7
Arrival and Price Index of Agra
Agra - Potato Arrival and price index

145 124
135
114
125
115 104
Arrival Index

Price Index
105 94
95
85 84
75 74
65
64
55
45 54
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month

arrival index price index

Source: NHRDF
Seasonality arrival index of potato in Agra indicates that peak arrivals are seen in
the month of May to June. The lowest arrival witnessed in the month of December
to January. Analysis of price index for the same period indicates the prices tend to
remain low when the arrivals are huge and price appreciation takes place from the
month of July when the availability of the potato declines in the markets.

Kanpur - Potato Arrival and Price Index

133 123

123 113

113
103
Arrival Index

Price Index

103
93
93
83
83

73 73

63 63
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month

Arrival Index Price Index

Source: NHRDF

8
Market Price Volatility
Potato prices in the major production as well as trading markets Witness high
degree of volatility to the extent of 25%.
Market Volatility ( % )
Agra 25
Farrukhabad 23
Kanpur 25

Potato production in West Bengal

West Bengal is the second largest potato producing state in the country
accounting for around 30% of country’s potato production. Production ranges
between 70 to 80 lakh tons. Yield levels in the state are highest ranging between
24 to 26 tons per hectare. Potato in west Bengal is mainly grown in Rabi season.

Potato Area and Production Trends - West Bengal

3.70 90.00
3.50 85.00

Production ( Lakh Tons )

Area ( Lakh Hectares )

3.30 80.00
3.10 75.00
2.90 70.00
2.70 65.00
2.50 60.00
2.30 55.00
2.10 50.00
1.90 45.00
1995- 1996- 1997- 1998- 1999- 2000- 2001- 2002- 2003- 2004- 2005-
96 97 98 99 00 01 02 03 04 05 06
season

Area Production

Source: NHRDF

9
Arrival and Price Index of Burdwan

Burdwan - Potato Arrival and Price Index

185 124

165 114

145 104
Arrival Index

Price Index
125 94

105 84

85 74

65 64

45 54
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month

Arrival Index Price Index

Source: NHRDF

The arrival and price seasonality analysis of Burdwan markets reveal that prices
of potato tend to gradually increase from July to touch peak in December. There
is a gradual fall in prices from January and low will be seen in the month of May.

Market Price Volatility

Market Volatility ( % )
Burdwan 8
Kolkata 20
Midnapore 15

Potato production in Bihar

Bihar is the third largest potato producing state with annual production of 20 lakh
tons. In Bihar, potatoes are mainly grown in the districts of Rohtas, Gaya,
Nalanda, Nawada, Aurangabad and Bhabua. Of these districts, Nalanda and
Nawada have highest production of potato.

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 Bihar - Potato area and production trend

1.8 25.1
1.7 23.1

Production ( Lakh Tons )

Area ( Lakh Hectares )
1.6 21.1
1.5
19.1
1.4
17.1
1.3
15.1
1.2
1.1 13.1

1 11.1
0.9 9.1
1995- 1996- 1997- 1998- 1999- 2000- 2001- 2002- 2003- 2004- 2005-
96 97 98 99 00 01 02 03 04 05 06
Season

Area Production

Source: NHRDF
Market Price Volatility
Market Volatility ( % )
Patna 28

Potato production in Punjab

State Punjab produces around 14 to 15 lakh tons of potato annually. Potatoes
mainly produced in the districts of Patiala, Ropar, Hoshiarpur and Ludhiana,
Amritsar, Jalandhar, Kapurthala and Bathinda

Punjab - Area and Production Trend

0.92 16.3
0.82 15.3
production in lakh tons

14.3
area in lakh hectares

0.72
13.3
0.62 12.3
0.52 11.3
0.42 10.3
9.3
0.32
8.3
0.22 7.3
0.12 6.3
1995- 1996- 1997- 1998- 1999- 2000- 2001- 2002- 2003- 2004- 2005-
96 97 98 99 00 01 02 03 04 05 06
Seasons

Area Production

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Price Volatilities in Major Markets of Punjab:
Punjab markets witness high volatility in potato prices. The extent of volatilities
extends more than 25% in major markets.
Market Volatility ( % )
Amritsar 35
Abohar 29
Khanna 31
Ludhiana 28

Potato production in Madhya Pradesh

Madhya Pradesh contributes to about 8.75 lakh tons of potato to the national
production with about 60000 hectares under potato cropped area. Indore
contributes to about 3 lakh tons annually. Indore potato is known for its quality.
Nearly about 20% is sold fresh and the rest is stored in the cold storages in the
districts. Indore potato is mainly used for processing. Prices in Indore markets
witness volatility to the extent of about 25%

Madhya Pradesh - Trends in potato area and

production

0.7 10

9
0.6
production ( lakh tons )
area ( lakh hectatres )

8
0.5
7

0.4 6

5
0.3
4
0.2
3

0.1 2
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06
season

Area Production

Source: NHRDF

12
Arrival and Price Index of Indore

Indore - Potato arrival and price index

165 115

145 105

95
arrival index

125

price index
85
105
75
85
65
65 55

45 45
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month

arrival index price index

The above chart indicates the potato prices gradually declines from the month of
January and touches its lowest price in the month of July – August which is
coinciding with higher arrivals.

Potato production in Karnataka

State occupies nearly 5 percent of the total potato area in the country. The state
contributes to less than 5% of total potato produced in the country. In Karnataka
potato is grown mainly as kharif crop.

Karnataka - Trends in potato area and

production

0.59 7
Production in lakh

6
0.49
Area in lakh

5
hectares

0.39 4
tons

0.29 3
2
0.19
1
0.09 0
19 9 6

19 9 7

19 9 8

19 9 9

20 0 0

20 0 1

20 0 2

20 0 3

20 0 4

20 0 5

6
-0
-

-
95

96

97

98

99

00

01

02

03

04

05
19

Seasons

Area Production
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 Bangalore Potato price and arrival index

106 120
104
100
102
arrival index

100 80

Price index
98
60
96
94 40
92
20
90
88 0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month

Arrival Index Price Index

Arrival index from the above chart reveals that Karnataka arrivals are seen to
gradually increase from August and tends to reach its high in the month of
November – December. Prices also show the same observation.

Price Volatilities in Major Markets of Karnataka:

Market Volatility ( % )
Bangalore 16
Belgaum 10
Hassan 24

Major potato trading centers

States Potato trading centers
Agra, Farukhabad, Firozabad, Kannouj, Meerut, Moradabad,
Uttar Pradesh Mujaffarnagar, Kanpur, Lucknow
West Bengal Hoogly, Burdhwan, Midnapur, Siliguri, UttarDinajpur, Kolkatta
Jharkhand Ranchi, Hazaribagh
Karnataka Bangalore, Hassan, Kolar, Belgaum
Uttaranchal Dehradun, Haldwani
Bihar Muzaffarpur, Samastipur, Rohtas, Patna

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Meghalaya Mowyong
Tripura Agartala, Panichowki
Tamil Nadu Mettupalyam, Chennai
Maharashtra Pune, Mumbai
Punjab Jalandhar, Chandigarh
Madhya
Pradesh Indore

Marketing channel for potato

Broadly there are two marketing channel for potato
1. Storing in cold storages before selling to prevent distress selling and also
to take price advantage
2. Selling immediately after harvest

Channel 1 is more common in Agra, Kolkata, Indore and Punjab where there
exist good cold storage capacity.

Channel 2 is common in other potato growing regions like Hassan, Kolar, Andhra
Pradesh,

Market intermediaries play major role in both the channels. There exist 4 to 6
intermediaries in between producer and ultimate consumer. The margin at
various level varies from 5 to 15%.
Longest market chain Shortest market chain
Producer Producer
Village level trader Trader at APMC
Trader at APMC Trader at consumption region
Broker Wholesaler
Trader at consumption region Retailer
Wholesaler Consumer
Retailer
Consumer

15
Arrival and Distribution pattern at major consumption markets
Source Apr-Jun Jul-Sep Oct-Dec Jan-Mar
Karnataka 800 2400
Bangalore Maharashtra 650 700
Maharashtra 300 100 150 300
Chennai Karnataka 150 250 200
Andhra Pradesh 100 50
Maharashtra 600 200 350
Hyderabad Karnataka 100
Andhra Pradesh 50 200
Mumbai Maharashtra 1137 1025 1026 1000
Maharashtra 200 500 300 300
Kolkata Karnataka 500 500
Maharashtra 270 10 180 480
Delhi Rajasthan 690 760 770 70
Maharashtra 260 200 310 310
Ahmadabad Rajasthan 60
Maharashtra 20 100 180 150
Mysore Karnataka 50 200 150 110
Tamil Nadu 150 50
Karnataka 20 40 120
Vijayawada Andhra Pradesh 80
Maharashtra 100 120

Exports:
India though stands fifth in terms of production at the global level the exports are
not significant. Indian potato mainly finds ways into the markets of Malaysia,
Nepal, Sri Lanka, Turkey and UAE

16