Cold storages drop prices by 30% as potato production decreases

Surplus storage capacity amid a season of low potato output, has led to a price war among cold stora…

Surplus storage capacity amid a season of low potato output, has led to a price war among cold storage owners. Facilities have dropped their rates with as much as 30% for the season. Over 30 new cold storages have come into the region in past two years, say industry players.

MP Cold Chain Industries Association president Hansmukh Jain Gandhi: "Storage capacity has doubled, but the production of potatoes has dropped. This has disturbed the market owing to which many cold storages are ready to stock at much lower prices than agreed by the association."

Gandhi said, at present there are close to 140 cold storages in Indore and Ujjain districts with a total capacity of 1 million tons.

According to timesofindia.com¸ the association has fixed the rate for potatoes storage for this season at Rs 190 (€2.34) per 100 kgs for 7 to 8 months, but cold storages have decreased their rates by 30% due to lack of supplies and steep competition.