Potato rates fell badly at harvest. Why does this happen and how do I plan selling?
6 Answers
Potato prices crash at harvest mainly because of oversupply; when a big national crop comes in February to March, mandis flood and rates drop, sometimes below cost. It is a classic cycle, a high price year tempts everyone to plant more, the next year output jumps and prices crash. To manage it, do not dump everything at harvest; use cold storage to spread sales through the year, but only if the expected later price beats harvest price plus rent, transport and weight loss. Track modal rates on Agmarknet and your local mandi, sell in lots, and grade well since clean, uniform tubers always sell better. Consider a processing variety with a buyer contract to reduce dependence on the volatile fresh market.
The crash years are brutal. I learned to never plant extra just because last year paid well, because that is exactly when everyone else does too and the price collapses.
Cold storage helps but it is not magic. I held a lot one crash year and the later rate barely covered the rent and weight loss. Do the maths on rent plus transport before you decide to hold, and check the trend on the portal.
A processing contract gave me some stability through the swings. The price is not always the highest, but it does not crash to nothing either, so it balances out my fresh market lots in a bad year.
Grade and sell in lots. When I sent ungraded mixed bags into a glut they fetched almost nothing, but clean uniform bags still found buyers at a better rate even on a bad day.
Compare nearby mandis before loading. On a glut day my local mandi was paying very little, but a market a bit further out had less arrival and paid better that day. The Agmarknet figures helped me decide where to go.