In Bangladesh, the area dedicated to potato cultivation has expanded to an unprecedented 521,000 hectares this year. Despite this growth, producers are increasingly concerned about financial losses due to declining potato prices. Retail prices in Dhaka have fallen to between $0.27–$0.46 per kilogram, a sharp decline from previous rates of $0.59–$0.73. At the producer level, particularly in northern districts, prices have dropped to $0.11–$0.18 per kilogram. With only 3 percent of the crop harvested so far, there are fears of further price declines as the harvest continues.
The cost of production has reportedly risen, with estimates from Bogura at $0.13 per kilogram and from Rangpur exceeding $0.14 per kilogram. Farmers have faced challenges, including higher seed prices and a scarcity of triple superphosphate fertilizer. The usual planting period was also delayed due to unexpected rainfall, complicating the cultivation process.
Despite these difficulties, overall production is expected to be higher this year due to expanded acreage and favorable climatic conditions. However, falling market prices and rising production costs have placed farmers in a precarious financial situation. The Bangladesh Cold Storage Association has raised storage fees to $0.07 per kilogram, further exacerbating financial strain on growers.
With an expected bumper yield, stakeholders are urging the government to facilitate potato exports to mitigate potential losses. Production this year is poised to surpass annual demand, raising concerns about excess produce remaining unsold. The situation highlights the challenges faced by the agricultural sector in balancing production with market dynamics.
Source: The Daily Star