Potato farmers, traders and cold storage owners in northern Bangladesh are facing steep price drops, even though the government set a Tk 22 per kilogram wholesale rate.
In practice, potatoes are changing hands at Tk 12–14 per kg in cold storages, while retail prices remain at Tk 20–22. The gap has left stakeholders fearing heavy losses ahead of the arrival of new crops in late November.
On Tuesday night, the Ministry of Agriculture announced a floor price of Tk 22 per kg at cold storage facilities and pledged to purchase 50,000 tonnes of potatoes. Yet farmers and traders remain sceptical about whether the pledge will be fully realised.
Cold storage operators, most of whom run their businesses on loans and offer credit to growers and traders, say they are under severe financial strain.
“Our storage capacity is over 200,000 tonnes but potatoes are selling well below the government-set price. If farmers do not get a fair price, we also will face huge losses,” said Obaidul Haque, proprietor of Uttamasha Cold Storage in Mithapukur upazila.
Farmers point out that cultivating one hectare of potatoes costs around Tk 400,000–420,000, covering seeds, fertiliser, labour and storage fees. With yields of 20–22 tonnes, production expenses amount to Tk 26–28 per kg.
At the current market price of Tk 12–14, growers are losing Tk 20–22 on every kilogram.
Babul Mia and Abu Hanif, farmers from Gangachara upazila, said they had stored their potatoes in cold facilities but were unwilling to sell after buyers rejected the floor price.
“We had hoped to cover costs, but now we are being forced to sell small amounts at a loss just to manage household expenses,” Babul said.
Minimum price of potatoes at cold storage gates set at Tk 22 per kg
Mizanur Rahman, another grower, said he had kept 1,200 sacks of potatoes in storage at a cost of Tk 22 lakh.
“If I sell now, I will recover only Tk 800,000. That means a loss of Tk 14 lakh. I don’t know how to survive this,” he lamented.
Wholesale dealers in Rangpur city confirm that transactions are taking place far below the government’s minimum rate.
“It costs another Tk 120 per sack to transport potatoes from cold storages to warehouses. With such margins, there’s no profit left. Retailers are selling at Tk 18–20 per kg,” said wholesaler Nazrul Islam.
This season, potato cultivation exceeded official projections by roughly 20,000 hectares in the Rangpur region.
The Department of Agricultural Extension (DAE) had set a target of 160,200 hectares, but farmers planted close to 180,000. With yields surpassing 26 tonnes per hectare, the total output in the division’s five districts reached 3.2 million tonnes.
Based on prevailing market rates, stakeholders estimate losses exceeding Tk 50 billion, with every tonne incurring losses of more than Tk 20,000.
“Farmers are on the brink of ruin, and cold storages are also at risk of defaulting on loans,” warned an agricultural officer.
The region has 71 cold storage facilities with a combined capacity of 750,000 tonnes, but an estimated 2.2–2.4 million tonnes of potatoes remain outside, stored by farmers using traditional methods.
Lalmonirhat potato farmers watch profits rotting as prices plunge
Much of this stock faces spoilage in the hot weather, compelling farmers to sell at distress prices.
Local authorities say they are working to steady the market.
“We are monitoring markets to ensure compliance with the government-set prices,” said Rangpur Deputy Commissioner Rabiul Faisal.
Deputy Commissioner Rakib echoed the assurance, noting that strict monitoring is in place.
DAE Additional Director Shafiqul Islam added that authorities were striving to implement the Tk 22 floor price but admitted that ‘market realities’ posed major challenges.
With early harvests expected by late November, growers warn that demand for stored potatoes will soon plummet.
Govt to procure potatoes to support farmers: Adviser
Unless the government’s procurement plan takes effect promptly, farmers, traders and storage owners fear they will face crippling losses and mounting debts, they said.