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Cause of Potato Scab. The cause of common potato scab is a bacterium, Streptomyces Scabies, found in the soil. It is most common on light, sandy soils, low in organic matter. Soils that were previously grassland are particularly liable to having the disease. Soils with a high pH (recently limed) provide a better environment for the bacteria.
Answer Wiki. potato contains poisonous substance. Potato eye contains poisonous substance called solanine. When the potato eyes starts to bud, Potato itself will have poisonous substance too. It can be tell by the color of potato. Part that contains solanine will be green color but potatoes are still edible if you just get rid of green part.