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Bangladesh potato sector faces surplus and weak exports

Bangladesh currently produces close to 12 million tons of potatoes, leaving a surplus of around 4 million tons. According to the Bangladesh Bureau of Statistics (BBS), production reached 11.57 million tons in the 2024/25 fiscal year, up 9.17% from 10.60 million tons in the previous year. The increase came from an expansion of 35,000 hectares and favourable weather conditions. Despite the higher output, farm-gate prices dropped to their lowest in a decade.

Farmers report distress sales due to inadequate cold storage facilities, limited marketing channels, and the absence of an effective export policy. Domestic demand for potatoes is estimated at just over 9 million tons annually, according to the Tuber Research Centre (TRC) and the Bangladesh Cold Storage Association (BCSA). This includes 1 million tons for seed use, around 8 million tons for direct consumption, and volumes for processing into chips, crackers, and other products.

Exports remain minimal, with only 62,000 tons shipped in FY2025, a small share of the total production. The mismatch between production and consumption has created recurring surpluses, much of which either remains unsold or deteriorates in cold storage.

To reduce pressure on the domestic market, the BCSA has suggested including 10 kilograms of potatoes per household in government social safety net schemes. This, they estimate, could absorb about 1 million tons from cold storage. However, longer-term stability depends on raising export volumes.

Russia and Eastern European countries are considered potential markets, but Bangladesh faces barriers. Russia temporarily banned Bangladeshi potatoes after detecting fungal diseases, underlining the lack of accredited laboratories for pre-shipment testing and certification to meet standards required by Russia and the European Union. While exports to some Eastern European countries have taken place since 2011, the absence of systematic quality control has restricted growth.

Experts indicate that aligning production with market requirements and meeting sanitary and phytosanitary standards would allow Bangladesh to increase exports. This could improve farm-gate prices and reduce waste. Establishing accredited testing facilities, expanding modern cold storage capacity, and improving logistics such as packaging, transportation, and customs clearance are considered necessary steps. Farmers would also require training to produce export-grade potatoes.

Export promotion is seen as essential for balancing the domestic market. Without such measures, surpluses will continue to weigh on farm incomes.

Source: Financial Express

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