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Bangladeshi potato prices below production costs

Potatoes are a major cash crop in Bogura, Bangladesh, where 48 local and high-yielding varieties are cultivated, according to the Department of Agricultural Extension (DAE). The Asterix variety, locally known as Stick, is the most widely planted this season. Despite high productivity, market prices have not covered production costs, and growers report continued financial pressure.

In 2024, the DAE set a production target of approximately 1,199,910 tons on 55,060 hectares. Actual cultivation reached 60,435 hectares, and output totalled about 1.33 million tons. For the current fiscal year, the cultivation target is 55,750 hectares, but planting reached 54,465 hectares, 1,285 hectares below target. The production target for the current season is approximately 1.33 million tons. As of 24 February, around 36% of the cultivated area had been harvested, producing close to 400,000 tons. Yields are typically lower at the beginning of the harvest period and increase later in the season. Officials expect total output to meet the target due to yield performance.

However, market supply has pressured prices. Wholesale prices for new potatoes are currently BDT 9 to 12 per kg, equivalent to approximately US$0.08 to US$0.11 per kg. Production costs for early-season potatoes are estimated at BDT 14 to 16 per kg, or about US$0.13 to US$0.15 per kg.

Md Firoz of Ashokola village said, "Last year, we couldn't sell potatoes profitably due to losses. After spending BDT 18,000–20,000 per bigha (1 Bigha = 1338 Square Meter), we didn't even recover half the cost. This year is the same. Prices are extremely low. I've been cultivating loans for two years. My debt now stands at BDT 30,000."

Trader Md Sadekur Rahman stated, "Last year, I bought around 200 sacks at BDT 11 per kg and stored them in cold storage. I hoped for profit. Including all costs, the price stood at BDT 19–20 per kg. In the open market, those potatoes are sold at BDT 16–18 per kg. Instead of profit, I incurred further losses. Currently, potatoes are retailing at BDT 20–25 per kg."

Bogura has about 42 cold storage facilities with a combined capacity of roughly 450,000 tons. Nearly 40% of last year's crop remains in storage, adding to supply pressure. Faridur Rahman from the DAE said, "Around 36 percent of the land has been harvested so far. Although acreage has declined, the yield obtained so far suggests the production target will be achieved."

Source: Bonik Barta

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