In Bangladesh, potato growers face challenges with current market dynamics. At present, potatoes are sold at around $0.09–$0.11 per kilogram at the field level, while the production cost stands at approximately $0.13–$0.15 per kilogram. To mitigate losses, growers are storing potatoes in cold storage, but storage fares have increased by $0.02 per kilogram to $0.07 compared to last year.
According to growers, cold storage owners increase fares annually, and protests have had little effect. Farmers report low selling prices, while prices rise once middlemen handle the produce. They suggest that government intervention to purchase potatoes directly from growers could help stabilize prices and reduce the influence of middlemen.
Sheikh Mobarak Hossain, a grower from Nuriakhetra Village, noted that his farming costs of around $455–$545 per bigha exceed his returns of approximately $365–$410 per bigha. Cold storage sources report 350 facilities nationwide with a total capacity of 3 million metric tons. With storage fares at $0.07 per kilogram, the total cost for growers and traders amounts to roughly $218 million, leading to reluctance to use cold storage.
In Bogura and Joypurhat, 55 cold storage with a capacity of 750,000 metric tons has filled rapidly since February 20. Cold storage owners, represented by the Bangladesh Cold Storage Association, cite rising costs of labor, electricity, and other expenses as reasons for the fare increase. They stated, "This increase in the storage fare will impact consumers." The association reports that actual potato storage costs are around $0.08 per kilogram, though fares are officially set at $0.07 per kilogram.
Growers also note changes in storage practices, with bag capacities reduced from 70–80 kilograms to 50 kilograms, further affecting storage costs. Mostafa Azad Chowdhury Babu of the Bangladesh Cold Storage Association emphasized the need for per-kilogram fare calculations to prevent losses for storage owners.
Source: Daily Observer