In Bangladesh, the cost of potatoes has increased significantly over the past week, attributed to the dwindling supplies of last season's harvest as the new planting season approaches. This scenario is compounded by the high profit-seeking behavior among certain individuals within the supply chain, exacerbating the financial strain on consumers amid ongoing inflationary pressures. Data from the Bangladesh Bureau of Statistics indicate that inflation, although slightly reduced in September, remains above 9 percent, a trend observed since March 2023. Concurrently, food inflation has consistently stayed over 10 percent for six months since April.
Market dynamics suggest a seasonal scarcity of potatoes towards the end of each season, leading to price hikes. The planting season spans from October to November, with harvesting conducted between February and April. Retail prices have seen a notable increase, with a kilogram of potatoes now costing up to Tk 70 (USD 0.74), marking a significant rise from the previous week. The Trading Corporation of Bangladesh (TCB) reports a 17.39 percent increase in potato prices over the past week, 22.73 percent over the past month, and 28.57 percent over the past year.
Adverse weather conditions, including heavy rains and cyclones, alongside diseases such as late blight, have contributed to the instability in the potato market this year. Despite these challenges, farmers and traders have reported profits per kilogram of potatoes, which is unusual towards the season's end. Mislabeling of table potatoes as seed potatoes for storage has been identified as a tactic by some farmers to manipulate market prices. Officials expect prices to normalize with the arrival of new potatoes in the market towards late November.
With an annual demand for potatoes estimated between 7.5 to 8 million tons, production figures have been a topic of discrepancy between various agricultural bodies. The Bangladesh Cold Storage Association reported a production of 8.5 million tons last year, in contrast to the Department of Agricultural Extension's estimate of 11.2 million tons.
Source: ANN