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Bangladesh seed potato project cost rises to US$106 million

Bangladesh's government project aimed at strengthening the production, storage, and farmer-level distribution of quality seed potatoes has undergone a second revision, with costs rising sharply due to repeated implementation delays.

According to official documents, the total estimated project cost has increased to US$10.35 billion, up from the originally approved US$6.26 billion. The project, titled Strengthening Production, Preservation, and Farmer-Level Distribution of Quality Seed Potato, was first revised to US$6.61 billion before the latest adjustment.

Alongside the cost increase, the project completion deadline has been extended by a further two years, moving from June 2025 to June 2027. The Ministry of Agriculture is the sponsoring body, while implementation is being carried out by the Bangladesh Agricultural Development Corporation (BADC).

Officials attributed the higher costs to prolonged construction schedules, additional infrastructure requirements, and rising operational expenses. Most of the revised budget will be financed through government funds, with a smaller contribution from BADC's own resources.

The project initially ran from September 2019 to June 2024. Extensions have directly increased expenditure, particularly in cold storage construction, mechanisation, energy supply, farm-level seed production, and transport-related activities.

A key factor behind the latest revision is the decision to build four additional cold storage facilities. These are intended to support the government's target of distributing 60,000 tons of seed potatoes to farmers by 2030. Existing and ongoing BADC facilities are expected to provide storage capacity of just over 53,000 tons, leaving a shortfall.

The project covers selected districts and upazilas across eight divisions. Its stated objectives include expanding access to disease-free, high-quality seed potatoes, increasing modern storage capacity, and improving farmer skills through training and demonstrations.

Despite rising costs, the Planning Commission has assessed the revised project positively. By June 2025, financial progress had reached nearly 88 per cent, while physical progress stood at around 95 per cent.

Officials said the extended timeline is necessary to complete newly added infrastructure, renovate older storage facilities, and introduce solar power in selected cold storage units.

Potatoes remain Bangladesh's largest vegetable crop. National production reached a record 11.2 million tons this year, exceeding domestic demand by approximately 2.2 million tons. Cultivated area increased 8 per cent year on year to 492,000 hectares in fiscal year 2024–25, while total output rose 9 per cent compared with the previous season, according to the Bangladesh Bureau of Statistics.

Source: UNB

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