In Bogura, Bangladesh, potato farmers are encountering substantial financial setbacks due to a drastic decline in wholesale prices. In May, the price of this staple crop dropped by more than 55% compared to the same period last year at Mahasthan Haat, the main wholesale market in the district.
During this period, potatoes are trading at approximately $0.074 per kilogram, a decrease from last year's price of $0.17. This sharp decline forces sellers to offload potatoes at low prices before spoilage occurs. According to Gazi Anowar Ali, a trader at the market, the industry faces a "massive oversupply."
Some potato varieties like the 'stick' are being sold at $0.046 to $0.051 per kilogram, significantly lower than the production cost of $0.13 per kilogram, based on the Department of Agricultural Extension (DAE) data in Bogura.
The price drop is not isolated to Mahasthan Haat. Other major potato markets in the district, such as Kitchak Haat and Mokamtala, reflect similar trends, with prices per maund (40 kg) ranging from $2.58 to $2.95, while 'stick' potatoes fetch $2.02 to $2.12 per maund.
DAE reports that 48 potato varieties, both local and high-yielding, are cultivated across Bogura. This year, 'Asterix', or 'stick' potatoes, have been predominantly grown. The district's initial target was approximately 1.2 million tons from 55,060 hectares. However, actual cultivation reached 60,435 hectares, boosting yields per hectare from 21.6 to 23 tons, resulting in a historical harvest of 1.45 million tons, surpassing the previous season by over 340,000 tons.
"Favourable weather conditions helped boost both the acreage and yield," noted a Bogura-based DAE official. However, the surplus has challenged storage capabilities. The district's 42 cold storages, with a total capacity of 400,000 tons, cannot absorb the excess supply.
With an annual demand of just 300,000 tons for its 3.75 million population, many farmers face difficulties. Approximately 30% of the harvest becomes waste due to storage inadequacies. Makhlis Ali, a farmer from Betgari village, experienced a $882 loss this season from cultivating 10 bighas of land. He sold potatoes at prices below production costs and faced losses without adequate storage.
Rising costs have exacerbated the situation. Potato seed prices increased to $0.74 to $0.92 per kilogram, and costs for pesticides, labor, and land leases have also escalated. Unfortunately, business syndicates controlling cold storage cards limit genuine farmers' access to storage space, contributing to their financial challenges.
Source: Financial Express
