The interim government has withdrawn its plan to purchase 50,000 tons of potatoes, a measure originally intended to protect farmers as market prices fell below production costs. A Ministry of Commerce official said a recent meeting between the agriculture and commerce ministries reviewed the proposal. "The government's plan to buy potatoes directly from farmers was discussed at length. But it was concluded that the move would not benefit farmers at this stage. Instead, cold storage owners and middlemen would gain." The official added that new incentive measures are being prepared for the upcoming season.
According to the Agriculture Information Service, potato planting runs from October to November, with harvesting from February to April. Ministry of Agriculture secretary Mohammad Emdad Ullah Mian said market prices have begun rising, selling for Tk 20 to Tk 25 per kilogram (US$0.16 to US$0.20/kg). "If the government now sells potatoes at an even lower price, it could create a negative impact on the market," he said, adding that implementing the earlier plan "would harm the market."
Mostafa Azad Chowdhury Babu, president of the Bangladesh Cold Storage Association, said potatoes sold in August for Tk 12 to Tk 14/kg (US$0.10 to US$0.11/kg). "The price has now risen in the northern region, where potatoes are being sold at Tk 16 to Tk 20 per kg (US$0.13 to US$0.16/kg). In the Munshiganj zone, they are selling for Tk 14 to Tk 15 per kg (US$0.11 to US$0.12/kg)." He added that 1.375 million tons are currently stored nationwide, including 690,000 tons of table potatoes and the remainder seed potatoes.
Agriculture economist Jahangir Alam Khan criticised the withdrawal. "The government announced it would buy 50,000 tons of potatoes, but then backed down. Nothing was purchased. This shows negligence toward farmers." He said farmers are facing losses and that the current market price is below production cost. Khan noted that prices should be around Tk 25 to Tk 27/kg (US$0.20 to US$0.22/kg) after including storage and other expenses. He said the government-set level of Tk 22/kg (US$0.17/kg) at cold storages "is not being achieved." He added that purchasing even 10 per cent of national production would have helped stabilise the market.
The procurement plan, announced in late August, aimed to store 50,000 tons for sale during October–November. It followed reports of farmers selling potatoes at Tk 11/kg (US$0.09/kg) at the field level, below the Department of Agricultural Extension's estimated average production cost of Tk 14/kg (US$0.11/kg). In some northern regions, production costs reached Tk 20/kg (US$0.16/kg).
Bangladesh produced 11.5 million tons of potatoes last season, the highest on record, according to the Bangladesh Bureau of Statistics. The bureau attributed the volume to increased cultivation area and favourable weather.
Source: The Daily Star
