Traders said they had increased their dependence on imported potatoes to supplement the demand in domestic market due to depleting stock of potatoes in domestic warehouses amid decline in production.
"Imported potatoes have dominated the market as domestic production hardly contribute one-fourth of the market demand," said Bharat Upreti, an importer of potatoes and onions at Kalimati vegetables market.
Domestic production fulfills over 60 percent of market demand in normal circumstances. Traders said around eight to 10 trucks laden with potatoes enter the capital every day.
Due to low supplies, price of potatoes has gone up by at least Rs 10 per kg over the week. Upreti said Bhutanese and Indian potatoes were selling at Rs 38 and Rs 32 per kg respectively on Tuesday. Chinese potatoes have been priced at Rs 34 per kg.
"Potatoes are selling at IRs 20 per kg in Indian markets. The impact of Indian market has affected local market," Upreti added.
Similarly, price of onions too have increased to Rs 30 per kg from Rs 20 over the week due to short supplies and soaring prices in India that supplies more than 95 percent of total onions demand in local market.
With continued increase in prices of potatoes in the market, the Department of Customs has doubled the valuation rate for potatoes from Rs 8 per kg to Rs 16 effective from Monday as per the request of Potatoes and Onions Traders Association.
Traders expect the potato prices to continue to rise for one more month until the fresh harvest of local potatoes arrives in the market.
Indian big tomatoes are also becoming dearer in the recent days as traders continue to depend on Indian supplies due to lean production in local farms. However, increasing supplies of other vegetables, including cabbage, radish, egg plant, cow pea and French bean, has push down the prices for the last couple of weeks.
According to Binaya Shrestha, planning officer at Kalimati Fruits and Vegetables Market Development Board (KFVMDB), total arrivals of vegetables, fruits, fishes and spices have been increasing for last few days. Total arrivals of vegetables, fruits, fishes and spices combined have increased from 208 tons in Thursday to 409 tons on Monday.
Related story
Resolve VAT Controversy to Ensure a Smooth Supply of Potatoes a...
