Imtiaz Ahmed, Narayanganj

Potato prices have skyrocketed due to two primary reasons. In Munshiganj, known as the potato-producing hub, wholesale potatoes are being sold at 45-46 Taka per kilogram.

However, retail prices jump significantly, with potatoes costing 60 Taka per kilogram in local markets. Traders in Narayanganj are raising prices further, selling at 70 Taka per kilogram, burdening the local population.

Despite this, Consumer Rights authorities have not taken adequate action, allowing the syndicate of traders from Narayanganj and Munshiganj to exploit consumers.

Reasons behind price- hike :

This year, potato farmers harvested prematurely due to high market prices, leading to reduced production. Munshiganj, one of the leading potato-producing districts, fell short of its production target. While the goal was to produce 1.056 million tons, actual output was 1.036 million tons across 4,355 hectares. Additionally, potato yield per hectare has also decreased.

Stored potatoes in cold storage facilities in areas like Tongibari are being sold at exorbitant prices, creating difficulties for everyday consumers. Wholesale potatoes, priced at 46 Taka per kilogram in storage, are being sold for 60 Taka per kilogram in retail markets. Traders cite the lack of Indian potato imports and reduced local supply as reasons for the price hike.

Storage and distribution issues :

Tongibari had 9,015 hectares of potato cultivation this year, supported by 24 operational cold storage facilities. These storages hold 27,652 metric tons of seed potatoes and 36,108 metric tons of edible potatoes. A cold storage manager, Ahsan-ul-Rabbi, revealed that their facility has a storage capacity of 135,000 sacks, charging 250 Taka per 50 kilograms. Farmers can store potatoes for up to nine months.

Seed potato crisis :

Imported seed potatoes, now priced between 16,000-18,000 Taka per 50-kilogram sack (up from 10,000-11,000 Taka a month ago), have become scarce. Locally stored seed potatoes are also expensive, ranging from 3,200-3,400 Taka per 50 kilograms, compared to 800-1,000 Taka two years ago. This high price of seeds may deter farmers from planting potatoes, despite the government increasing cultivation targets.

International factors :

Potato imports have been affected by adverse weather in the Netherlands during the planting season, causing production delays. Additionally, conflicts in regions like Israel, Palestine, and the Middle East have disrupted supply chains, increasing shipping costs and transit times.

Production challenges and impact :

Early harvesting of immature potatoes, driven by high market demand, has reduced overall production. Adverse weather conditions also led to widespread crop diseases. Experts believe this might not lead to a severe crisis, as high prices are discouraging excessive consumption. For example, households that previously purchased 10 kilograms now buy only 5 kilograms.

According to Bangladesh Bureau of Statistics (BBS), the country's annual demand for potatoes is 7.5-8 million tons, accounting for 10-15% post-harvest losses, raising the total requirement to 9-9.5 million tons. In the 2022-23 fiscal year, production reached 10.44 million tons, but cold storage associations claim it was 25-30% lower than government estimates, causing price instability last year.

Profit margins and darmer insights :

Traders have profited significantly from this situation, with farmgate prices rising to 28-32 Taka per kilogram this year compared to 12-13 Taka last year. However, farmers remain concerned about rising seed costs and limited availability, which could impact the next planting season.

In summary, reduced production, supply chain disruptions, and syndicate activities have contributed to unstable potato prices, heavily burdening consumers while benefiting traders and middlemen.