According to the Department of Agricultural Extension (DAE), potato cultivation in Bangladesh reached a record 524,000 hectares this fiscal year, marking a 15% increase from the previous year. This expansion was driven by last year's high prices, which peaked at $0.73 per kilogram. However, as the harvest season unfolds, growers face difficulties due to oversupply, leading to sales below production costs.
In Dhaka, retail potato prices remain between $0.18 and $0.27 per kg, consistent with last week's figures, as reported by the Trading Corporation of Bangladesh (TCB). In other regions, prices have dropped further, with farmers in Rangpur, Dinajpur, Thakurgaon, Bogura, and Joypurhat receiving as low as $0.10 per kg, below the DAE's estimated production cost of $0.14 per kg.
Md Obaidur Rahman Mondol, director of the DAE's field service wing, noted that such extensive land dedication to potato farming is unprecedented. The Bangladesh Cold Storage Association (BCSA) projects total production at 12 million tonnes, while the Bangladesh Bureau of Statistics (BBS) estimates 10.6 million tonnes. Both figures exceed the country's annual demand of 9 million tonnes.
Anwar Hossain, a farmer from Dinajpur, reported selling potatoes at $0.12 per kg, despite production costs of $0.15 per kg, citing increased seed prices as a factor. Shariful Islam from Bogura faced similar challenges, selling at $0.10 per kg with costs between $0.15 and $0.16 per kg. He expressed concerns over future cultivation decisions due to ongoing losses.
Cold storage fees have also risen, adding to growers' challenges. Md Sawkat Osman from the DAE attributed the oversupply to favorable weather and the absence of late blight disease. Cold storage owners recently stated that retail prices would not exceed $0.36 per kg this year, given the production surplus.
Md Masud Karim from the Department of Agricultural Marketing (DAM) expressed hope for price improvements, while Mohammad Emdad Ullah Mian from the Ministry of Agriculture acknowledged monitoring difficulties in the supply chain and mentioned plans for policy support to prevent future issues.
Source: The Daily Star