Sixty-seven potato varieties/hybrids were grouped in 15 clusters on the basis of D2 values. The clustering pattern was not influenced by the geographic diversity of the varieties. However, a segregation between varieties of the Tuberosum and Andigena type varieties was observed. The exotic potato varieties and also the Indian varieties bred from Tuberosums showed a poor divergence. In contrast, the divergence in the varieties developed from Tuberosum-Andigena crosses was much greater. The inter-cluster distance of such varieties, with respect to Tuberosum and Andigena clusters, appeared to be influenced by the cytoplasm they carried. The varieties with Tuberosum cytoplasm were closer to clusters having Tuberosum varieties and those with Andigena cytoplasm were closer to clusters having Andigena type varieties. The characters least influenced by the selection during the course of evolution of the present day varieties were found to be mainly responsible for adding divergence to the population. A breeding plan involving varieties from different clusters has been outlined.