Potato Futures July 2012 Down 2.16 percent

Potato futures for July 2012 contract, at MCX, were trading at Rs. 1,167.70 per 100 kg, down by 2.16 per cent after opening at Rs. 1,190 against the previous closing price of Rs. 1,193.50. It touched the intra-day low of Rs. 1,161.10 till the trading. (At 3.56 PM today). Sentiment weakened further as a result of the increased supplies in the physical markets from the major growing belts in UP, Punjab, MP and West Bengal. Moreover, prices also fell as the spot price was above future price which led to a backwardation of potato prices in turn curbing the demand for the commodity in the domestic spot market.

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 prices reversed its previous day’s gains, falling by 2.16 per cent on Tuesday at the domestic markets as the traders offloaded their holdings tracking the lower demand in the markets against increased supplies.