Farmers across northern Bangladesh are grappling with severe financial distress. A confluence of oversupply, rising cold storage costs, and stagnant government intervention has put thousands of potato farmers at risk of financial ruin.
Regions such as Joypurhat, Rangpur, Kurigram, and Thakurgaon have been particularly hard-hit, with the market price of potatoes falling drastically, forcing farmers to sell their crops at a loss.
Market Prices Plunge Below Production Costs
In several key potato-producing regions, prices have fallen far below the cost of production. In Joypurhat, for example, the price per kilogram is currently 10-12 BDT (0.09-0.11 USD), significantly lower than the production cost of 16 BDT (0.15 USD).
The situation is similarly dire in Rangpur, where prices have plummeted to 9-10 BDT (0.08-0.09 USD), leaving farmers struggling to recover their investments.
Kafiluddin, a farmer from Aora village in Joypurhat, invested 85,000 BDT (762 USD) in cultivating potatoes on 70 decimals of land. “I had to sell my potatoes for 12 BDT (0.11 USD) per kilogram, incurring a loss of 32,000 BDT (289 USD),” he said.
Large-scale farmer Amirul Islam, who invested 20 million BDT (18,188 USD) on 95 acres, is also facing a similar plight. “My production cost per kilogram is 16.66 BDT (0.15 USD), but the market price is only 10-12 BDT (0.09-0.11 USD). This loss is unsustainable.”
The Cold Storage Crisis: Adding Insult to Injury
The price collapse has been compounded by rising cold storage costs. Cold storage fees, which were once affordable, have surged, with farmers now required to pay 200 BDT (1.81 USD) per bag upfront.
This additional financial burden is forcing farmers to sell their potatoes immediately, flooding the market and driving prices even lower.
“Hoarders benefit from the cold storage system, while small-scale farmers are left to sell their produce at a loss,” said Mostafa Azad Chowdhury Babu, Vice President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).
Regional Crisis: A Complex Web of Challenges
In Rangpur, which ranks as Bangladesh’s second-largest potato producer, the surplus has become overwhelming. Farmers cultivated potatoes on 66,280 hectares—far exceeding the original target of 53,610 hectares.
The result: oversupply and falling prices. Farmers are now selling potatoes at a fraction of the production cost, and many are forced to resort to desperate measures to cover expenses.
Ripon Mia, a tenant farmer, shared his frustrations: “I don’t own land; I lease it to grow potatoes. But this year, the losses are unbearable.”
Similarly, in Kurigram, farmers have been pushed into further debt due to skyrocketing seed prices, driven by middlemen who charged nearly double the government-approved rate.
“We had no choice but to buy seeds at exorbitant prices,” said Rabiul Islam from Kathalbari Union. “Now, we are selling potatoes for 10-12 BDT (0.09-0.11 USD) per kilogram, while our production cost is 25-27 BDT (0.23-0.24 USD).”
The Role of Government: A Delayed Response
Despite the growing crisis, government intervention has been slow. Officials have acknowledged the situation, but concrete solutions are yet to be implemented.
While the government’s initiative to export potatoes to Malaysia and Nepal initially raised hopes, stringent export regulations have limited the program’s impact.
Many farmers have criticized the export policy, claiming that the process is too rigid, and too much of their produce fails to meet the export standards.
Mehdi Hasan, an official from the Kurigram Agricultural Marketing Department, assured, “We are closely monitoring the market. If necessary, we will intervene.”
However, many farmers remain unconvinced that these measures will lead to lasting change.
Expanding Export Opportunities: A Glimmer of Hope
Despite domestic challenges, international demand for Bangladeshi potatoes remains robust. Exporters have pointed to Malaysia, Nepal, and the Middle East as key markets, but for exports to rise, significant policy adjustments are needed.
Abul Hasnat, a potato trader involved in exports, emphasized, “The government needs to streamline export policies and offer financial incentives to facilitate market access.”
Experts argue that improving logistics, expanding cold storage, and reducing bureaucratic hurdles could pave the way for increased exports and more stable prices domestically.
According to Saifur Rahman, a potato exporter from Joypurhat, “With more government support in logistics and subsidies, we could increase potato exports significantly and ensure fair prices for farmers.”
Securing the Future of Bangladesh’s Potato Farming
The potato crisis in northern Bangladesh presents a dire situation for thousands of farmers. The combination of low prices, high production costs, and increasing storage fees has created a perfect storm, leaving farmers with no clear way out.
Immediate intervention is necessary to stabilize prices, ease access to cold storage, and expand export opportunities.
Strengthening Bangladesh’s potato export infrastructure could provide a sustainable solution, ensuring that farmers receive fair prices while meeting the demand of international markets.
[…] Overproduction Drives Potato Farmers into Crisis in Bangladesh […]