In Bangladesh, the price of potatoes has unexpectedly soared to Tk80 ($0.94) per kilogram, a development that has taken many by surprise given the country's history of market volatility. Potatoes have traditionally served as an alternative to rice, the country's main staple, due to their higher nutritional value, including greater content of dietary fiber, vitamins, and minerals. Despite these benefits, potatoes have not been the preferred choice over rice.
Historically, Bangladesh produced more potatoes than needed, leading to prices dropping below production costs and the vegetable being used as cattle feed. Efforts to encourage potato consumption have largely been ignored, though some policy adjustments have allowed for exports to countries in South and Southeast Asia, and to a limited extent, Russia.
The dramatic price increase in 2023, from Tk50-55 ($0.59-0.65) to Tk80 ($0.94) per kilogram, has been attributed to a supply shortage, a claim met with skepticism. There has been no indication of a decrease in potato farming or cultivation area. It is suspected that traders are manipulating the supply for profit, especially targeting items with longer shelf lives or essential goods such as staples, cooking oil, and sugar for price hikes.
Even with the introduction of Indian onions leading to a slight price decrease, the overall strategy of setting prices without thorough market analysis has been criticized. The official price for potatoes was set at Tk39 ($0.46) per kilogram, while the market price was between Tk65-70 ($0.77-0.82), highlighting a disconnect between government pricing and market realities. This situation underscores the challenges in enforcing pricing decisions and controlling market manipulation in Bangladesh.
Source: The Financial Express