Karnataka produces 1.4% of potato from 4.1% national potato area. Hassan is the largest potato producing district in the State accounting for 20% production and 56% crop area in Karnataka. Potato productivity ACGRs in Hassan (-12%) and Karnataka (-7%) over 1999-00 to 2009-10 and triennium ending 2009-10 average of 2.8 and 6.1 t/ha, respectively, depict a pathetic and precarious situation of financial health of potato farmers in the area. However, Karnataka in general and Hassan in particular, produce off-season potato suitable for processing industry. Keeping sustainability of crop husbandry in the area and growth of Indian potato processing industry into mind, a joint survey by CIP- SWCA, New Delhi, and CPRI, Shimla, was carried out in Hassan to find out reasons responsible for such situation. Acute resource paucity and unavailability of quality seed potato at affordable prices were identified as one of the important reasons. This study analyses seed potato utilization pattern and its impact on farmers’ profitability in Hassan and Karnataka. The research paper provides detailed information on seed potato source, variety wise seed use rate, seed replacement rate, seed size, variety wise potato yield and adoption and impact of seed potato quality on farmers’ profitability.