Potato price plummets amid rising imports

Kathmandu, Mar. 25: Farmers in Panchkhal Municipality of Kavrepalanchowk district are facing growing concerns as potato price continues to decline, leaving them unable to recover even basic production costs.

Local farmers report that potatoes are currently being sold at as low as Rs. 12–15 per kilogram at the farm gate, while market prices hover around Rs. 15–20 per kilogramme in Kalimati market.

According to farmers, the cost of production exceeds Rs. 25 per kilogram due to rising labour expenses and input costs, putting them at a significant loss.

Ramsharan Dahal, a farmer from Panchkhal Municipality-3, said that despite the unfavourable rates, farmers are compelled to sell their produce.

“The potatoes are being sold at around Rs. 20 per kg in the market, but at the farm level, we barely get Rs. 12–15. This is far below our production cost,” he told The Rising Nepal.

Dahal added that two weeks ago, he sold 20 sacks (60 kg each) at Rs. 20 per kilogram, incurring a loss. But the price has declined further.

“It is time to dig the potatoes grown on about three ropanis of land. I am hoping the price will increase. Regardless of the price, the potatoes must be dug within a week,” he said.

Farmers said they have little choice but to harvest and sell their crops, even at a loss, as delaying harvest risks damage. Many also need to clear fields for the next planting season.

Traders have reportedly advised farmers to delay harvesting due to an oversupply of potatoes in the market, largely driven by increased imports from India. However, farmers argue that postponing harvest is not feasible.

Two years ago, farmers were able to sell potatoes for up to Rs. 42 per kg when the government imposed a tax on the import of potatoes and onions.  However, even after the tax on the import of onions and potatoes was removed, farmers were able to sell potatoes for at least Rs. 28 per kg last year.

He said that if the government does not take measures to restrict the import of potatoes from India, farmers will face huge losses.

According to the price list of Kalimati Market, locally produced potatoes are being sold at Rs. 15–20 per kg, while Indian potatoes are being sold at Rs. 20–23 per kg in the wholesale market.

At this rate, farmers would receive a maximum of Rs. 15–17 per kg from their fields.

Traders confirmed that increased imports have driven down local prices.

Bhagawan Chandra Upreti, a trader at the Kalimati Fruit and Vegetable Market, said that potatoes have the lowest price among vegetables in the market.

He said that local potatoes are being sold at a maximum of Rs. 20 per kg, while Indian potatoes are being sold at Rs. 23 per kg. According to him, due to the increased supply of potatoes from India, the price of local potatoes has decreased, and farmers have been hit hard.

He said that the government should take an immediate decision to control the import of potatoes, considering the interests of farmers.

Potatoes worth Rs. 6.7 billion imported

According to statistics from the Department of Customs, potatoes worth Rs. 6.79 billion were imported during the first eight months of the current fiscal year.

About 281,509 tonnes of potatoes worth Rs. 6.79 billion were imported during the review period.

Of this, the largest quantity of potatoes was imported from India, while a nominal amount was imported from Bangladesh.

About 251,513 tonnes of potatoes worth Rs. 6.3 billion were imported from India, while 29,862 tonnes worth Rs. 491 million were imported from Bangladesh during the first eight months of the current fiscal year.

The import of potatoes surged by 18.49 per cent in terms of value and by 23.8 per cent in terms of quantity during the first eight months of the current fiscal year compared to the same period last fiscal year.

 About 227,327 tonnes of potatoes worth Rs. 5.73 billion had been imported during the first eight months of the last fiscal year.

In the last fiscal year (2024/25), about 287,479 tonnes of potatoes worth Rs. 7.10 billion were imported.