Bangladesh's agriculture ministry will provide an additional Tk110 crore (US$10 million) in subsidies to potato growers, cancelling its earlier plan to procure 50,000 tons of potatoes. The support will be distributed directly to 20,32,000 farmers through mobile financial accounts.
The FY2025–26 budget allocation for potato farmers was Tk150 crore (US$13.8 million). With the new funds, total support rises to Tk260 crore (US$24 million). The decision was taken on 6 November during a review of the domestic potato market.
Under the revised plan, seed and fertiliser subsidies will continue from the main allocation. The additional Tk110 crore (US$10 million) will be calculated based on irrigation and labour costs per acre. Prices in July and August fell to Tk13–14 (US$0.12–0.13) per kilogram, below production and storage costs of Tk20–25 (US$0.18–0.23) per kilogram.
Earlier approval had been given to buy potatoes at Tk22 (US$0.20) per kilogram for distribution through the Trading Corporation of Bangladesh, but TCB said it could not identify which cold storages held farmer-owned stock. TCB Chairman Brigadier General Mohammad Faisal Azad said that with distribution costs, the price would reach Tk32 (US$0.29) per kilogram, requiring Tk22 (US$0.20) per kilogram in subsidy if sold at Tk10 (US$0.09). He proposed sending Tk110 crore (US$10 million) directly to growers instead, a position endorsed by senior officials.
The Department of Agricultural Extension has prepared a database of 20,32,363 farmers, including mobile numbers, linked payment accounts, and acreage details. Funds will be transferred once released by the finance ministry.
Bangladesh's annual potato demand is 104 lakh tons, while FY2024–25 production reached 115 lakh tons. As of 31 October, cold storages held 6.83 lakh tons of table potatoes and 8.27 lakh tons of seed potatoes. New crop volumes are expected to enter the market from February.
Source: The Business Standard
