Potato farmers, traders and cold storage owners in northern Bangladesh are facing huge losses as market prices continue to plunge far below government-fixed rates.
Although the agriculture ministry set a wholesale floor price of Tk 22 per kilogram and announced a plan to purchase 50,000 tonnes, potatoes are selling at Tk 12–14 per kg in cold storages, while retail prices hover between Tk 20 and 22. Stakeholders fear further losses ahead of the arrival of new crops in late November.
Cold storage operators, many of whom run their businesses on loans and provide credit to farmers, said they are under severe strain. “Our capacity is over 200,000 tonnes but potatoes are selling far below the government-set price. If farmers don’t get fair rates, we too will suffer huge losses,” said Obaidul Haque, owner of Uttamasha Cold Storage in Mithapukur, reports UNB.
Farmers said the production cost of one hectare of potatoes stands at Tk 400,000–420,000, meaning Tk 26–28 per kg. At current prices, they are losing Tk 20–22 on each kilogram.
“We had hoped to recover costs, but now we are being forced to sell small quantities at a loss just to manage household expenses,” said Babul Mia, a farmer from Gangachara.
Another grower, Mizanur Rahman, said he stored 1,200 sacks at a cost of Tk 22 lakh. “If I sell now, I will recover only Tk 8 lakh losing Tk 14 lakh. I don’t know how to survive this,” he said.
Wholesalers in Rangpur city confirmed that transactions are taking place below the official rate. “After adding transport costs, there’s no profit left. Retailers are selling at Tk 18–20,” said Nazrul Islam, a potato dealer.
This year, potato cultivation in Rangpur exceeded targets by about 20,000 hectares, with output in five districts reaching 3.2 million tonnes. Stakeholders estimate total losses may exceed Tk 50 billion.
The division has 71 cold storages with a combined capacity of 750,000 tonnes, but another 2.2–2.4 million tonnes are being kept outside under traditional methods, much of which risk rotting in the heat.
Local officials said steps are underway to stabilise the market. “We are monitoring markets to ensure compliance with the government-set prices,” said Rangpur Deputy Commissioner Rabiul Faisal.
DAE Additional Director Shafiqul Islam admitted, however, that ‘market realities’ are making enforcement difficult.
With new harvests expected by late November, farmers warned that demand for stored potatoes will collapse unless the government’s procurement plan is implemented immediately.
