Market
20 March 2026
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Source:The Tribune/Team Potato Bazaar
Potato Prices Crash to ₹1/kg in Punjab, Farmers Forced to Destroy Crop
Potato Prices Crash to ₹1/kg in Punjab, Farmers Forced to Destroy Crop
Severe Distress in Punjab Potato Belt
Punjab’s potato farmers are facing an acute crisis as farm-gate prices have crashed to as low as ₹1 per kg, pushing many growers into heavy losses. In a shocking development, farmers in parts of the state have started ploughing their standing crop back into the fields due to unviable market rates.
Farmers Unable to Recover Costs
A farmer from Fazilka district, who cultivated potatoes on six acres, said the prices are so low that even harvesting costs cannot be recovered. With input costs estimated around ₹35,000 per acre, selling at current rates is economically unfeasible.
Some farmers have even allowed villagers to take produce free of cost, highlighting the depth of distress in the region.
Bumper Crop, Weak Prices
The primary reasons behind the crash include:
- Bumper production and good crop quality this season
- Lack of Minimum Support Price (MSP) for potatoes
Oversupply in mandis leading to price pressure
Wholesale mandi prices are reported to be around ₹100–200 per quintal, translating to extremely low farm-gate realizations.
Limited Options for Farmers
Farmers currently face only two choices:
- Store produce in cold storages (adding further cost)
- Sell at distress prices
With no immediate price support mechanism, many are opting to destroy crops rather than incur additional losses.
Call for Government Intervention
Farmers have urged the government to introduce compensation schemes similar to Haryana’s Bhavantar Bharpai Yojana, which helps offset losses due to price crashes.
PB Insight
This situation highlights a recurring issue in the potato value chain—price volatility due to oversupply and lack of structured procurement. Strengthening processing linkages, export channels, and digital marketplaces like Potato Bazaar can play a key role in improving price discovery and reducing such distress cycles.
Punjab’s potato farmers are facing an acute crisis as farm-gate prices have crashed to as low as ₹1 per kg, pushing many growers into heavy losses. In a shocking development, farmers in parts of the state have started ploughing their standing crop back into the fields due to unviable market rates.
Farmers Unable to Recover Costs
A farmer from Fazilka district, who cultivated potatoes on six acres, said the prices are so low that even harvesting costs cannot be recovered. With input costs estimated around ₹35,000 per acre, selling at current rates is economically unfeasible.
Some farmers have even allowed villagers to take produce free of cost, highlighting the depth of distress in the region.
Bumper Crop, Weak Prices
The primary reasons behind the crash include:
- Bumper production and good crop quality this season
- Lack of Minimum Support Price (MSP) for potatoes
Oversupply in mandis leading to price pressure
Wholesale mandi prices are reported to be around ₹100–200 per quintal, translating to extremely low farm-gate realizations.
Limited Options for Farmers
Farmers currently face only two choices:
- Store produce in cold storages (adding further cost)
- Sell at distress prices
With no immediate price support mechanism, many are opting to destroy crops rather than incur additional losses.
Call for Government Intervention
Farmers have urged the government to introduce compensation schemes similar to Haryana’s Bhavantar Bharpai Yojana, which helps offset losses due to price crashes.
PB Insight
This situation highlights a recurring issue in the potato value chain—price volatility due to oversupply and lack of structured procurement. Strengthening processing linkages, export channels, and digital marketplaces like Potato Bazaar can play a key role in improving price discovery and reducing such distress cycles.
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