In a crisis that has gripped Bangladesh’s potato industry, overproduction, skyrocketing cold storage fees, and a lack of decisive government intervention have combined to jeopardize the livelihoods of thousands of farmers.
As the market is flooded with surplus potatoes and prices fall below production costs, farmers from Rangpur to Rajshahi are finding themselves caught in an economic squeeze—with many forced to sell at a loss to avoid the burden of inflated storage expenses.
Oversupply and Plummeting Prices
This season, potato cultivation has expanded dramatically, with planting areas exceeding target estimates by 12% and production projections reaching as high as 12 million tonnes, according to reports by Bonik Barta (19 February 2025). While an abundant harvest might appear beneficial at first glance, the reality is far grimmer. Excess supply has saturated the market, driving down wholesale prices to levels that no longer cover the steep production costs incurred by farmers.
For example, in Joypurhat, a local farmer revealed that while potatoes were being sold at approximately 10–12 Bangladeshi Taka (BDT) per kilogram (roughly USD 0.08–0.10 when converted at 1 USD ≈ 121.20 BDT), the production cost per kilogram often exceeds 16 BDT (around USD 0.13).
Similar price slumps have been noted across regions. In Rangpur, where prices once hovered between 25–30 BDT per kilogram, current figures have dropped to an alarming 9–10 BDT per kilogram (USD 0.07–0.08).
Daily Karatoa’s coverage from Ghordaghat in Dinajpur underscores this downward trend further, reporting that while premium varieties once fetched 500–700 BDT per “man” (with 500 BDT converting to about USD 4.13 and 700 BDT to roughly USD 5.78), farmers now struggle to recoup even a fraction of their input costs.
Escalating Cold Storage Fees
Compounding the woes of overproduction is a contentious rise in cold storage fees—a move that has stirred both outrage and protest among farmers.
On 8 February 2025, the Bangladesh Cold Storage Association (BCSA) announced an increase in storage fees from 5 BDT per kilogram (approximately USD 0.04) to 8 BDT per kilogram (around USD 0.07), representing a 60% hike.
Traditionally, farmers would store a 70‑kg bag for 350 BDT (or about USD 2.89), but under the new regime, the fee has surged significantly, straining already tight margins.
Critics argue that these fee increases were imposed unilaterally by influential cold storage owners, bypassing the official process mandated by the Agriculture Marketing Act of 2018—which stipulates that any changes in storage charges must follow consultation with the Directorate General of Agricultural Marketing through a government-approved system.
“According to the law, any fee adjustment should be preceded by discussions with the agricultural authorities. Instead, we saw a press conference announcement, which has left farmers feeling betrayed,” said Md. Masud Karim, Director General of the Agriculture Marketing Department, as cited by Bonik Barta.
The surge in storage fees has forced many farmers to reconsider holding their harvests. Instead of storing potatoes in hopes of a future price recovery, numerous producers are opting for immediate sales—even if it means accepting prices that barely cover production expenses.
In regions like Rajshahi and Rangpur, this dynamic has disrupted the market balance, potentially setting the stage for further destabilization by middlemen syndicates.
Protests Erupt as Farmers Demand Relief
The repercussions of these policies are visible on the streets. In Rajshahi, farmers have taken to public demonstrations to express their frustration.
At protest rallies organized at local venues such as the Rajshahi Press Club courtyard, groups of farmers have resorted to dramatic gestures—throwing sacks of potatoes onto roads—to underscore their demands for a rollback of the storage fee hike.
According to coverage by Jugantor (20 February 2025) and Daily Janakantha (19 February 2025), protesters are calling for the reinstatement of the previous fee structure, with some demanding that storage fees be reduced to as low as 2 BDT per kilogram (around USD 0.02).
Farmers in Rangpur echoed similar sentiments during their demonstrations. The local Potato Growers’ Movement, led by community figures such as Anowar Hossain Bablu and others, has been vocal in its criticism of the fee hike, alleging collusion between cold storage owners and middlemen syndicates.
“Our potatoes are perishable by nature, and if we are forced to incur exorbitant storage costs, we are left with no choice but to sell at a loss. This is unsustainable,” said one protester, as reported by Dhaka Post (19 February 2025).
Leaders from the Potato Growers’ Movement have outlined several demands during these protests, including:
- The cancellation of the current fee structure and its replacement with a rate as low as 2 BDT per kilogram.
- The elimination of advance booking charges that force farmers to pay 100 BDT per bag.
- The government’s direct intervention in cold storage operations by either subsidizing storage fees or setting aside dedicated storage capacity for genuine potato growers.
- The initiation of joint meetings involving cold storage owners, farmer representatives, and local administration to resolve these disputes.
Economic Implications and the High Cost of Production
The economic impact of these developments is profound. With production costs rising—driven by higher input prices for fertilizers, pesticides, labor, and even electricity—farmers are finding it increasingly difficult to achieve profitability. In some regions, such as Chandpur and Cumilla, the gap between the cost of production and the market price is widening alarmingly.
A case in point is found in Cumilla, where despite an abundant harvest covering over 9,000 hectares, wholesale prices have plummeted from 70–80 BDT per kilogram to as low as 12–15 BDT per kilogram (approximately USD 0.10–0.12).
One local grower detailed his predicament: “I invested heavily in my crop, with expenses running as high as 60,000 BDT (nearly USD 495) per acre. When the prices drop to these levels, there is no way to cover my costs,” he lamented, as reported by Comillar Kagoj (20 February 2025).
Further complicating matters are the hidden costs associated with potato farming. In Kurigram, detailed analyses indicate that when accounting for land rental fees (which can run as high as 40,000 BDT per acre, or about USD 330), seed costs, and other overheads, the production expense can reach levels where even a modest sale price of 10–12 BDT per kilogram results in significant losses.
One farmer in Kurigram explained, “Every kilogram of potato costs me roughly 16.66 BDT (around USD 0.14) to produce. Selling at 10–12 BDT means I am losing money on every transaction”.
Calls for Government Intervention and Policy Reforms
Amid growing discontent, experts and agricultural economists are urging the government to step in before the crisis deepens further. Suggestions include the creation of a government-run cold storage system or at least the introduction of subsidies to cushion the blow for small-scale farmers.
Some proposals call for reserving 30% of existing cold storage capacity exclusively for genuine potato cultivators, ensuring that middlemen syndicates do not monopolize the storage facilities.
Dr. Jahangir Alam, an agricultural economist, told agri24 (21 February 2025), “If the current trend continues, we may see an even more destabilized market where farmers are forced to sell at rock-bottom prices, and the entire supply chain will suffer. The government must intervene decisively to set a logical fee structure and provide targeted subsidies.”
Moreover, export opportunities have emerged as a potential lifeline for farmers. Reports indicate that shipments of Bangladeshi potatoes have been made to markets in Malaysia and Nepal. However, stringent export regulations and bureaucratic delays have dampened the impact of these initiatives.
As one Kurigram official noted, “While exporting our surplus produce could help alleviate some losses, without easing local storage fees and streamlining export policies, the benefits will be minimal”.
The Road Ahead: A Multi-Pronged Strategy
The convergence of oversupply, rising storage fees, and diminishing prices presents a multi-faceted challenge that demands an equally comprehensive solution. A sustainable way forward for Bangladesh’s potato sector would involve:
- Reforming Storage Fee Regulations: Reinstituting a fee structure that is both fair and consistent with the legal framework—possibly by reverting to the earlier rate of around 4–5 BDT per kilogram (USD 0.03–0.04)—or subsidizing the cost to relieve farmers’ burdens.
- Enhancing Market Access: Streamlining export procedures to ensure that surplus produce can find profitable markets abroad, thereby reducing domestic oversupply.
- Supporting Small-Scale Farmers: Allocating a percentage of cold storage facilities exclusively for smallholder farmers and implementing targeted financial aid to offset production costs.
- Coordinated Policy Dialogue: Establishing a joint committee comprising government officials, cold storage owners, farmer representatives, and industry experts to develop a long-term strategy that addresses both immediate challenges and future vulnerabilities.
The Bangladesh Agriculture (BA) news portal’s recent report, “Overproduction and Policy Gaps – A Crisis for Bangladesh’s Potato Farmers” (13 February 2025), encapsulates these issues succinctly.
It emphasizes that without urgent, multi-dimensional policy reforms, the potato sector could spiral into a prolonged period of instability—jeopardizing not only the income of farmers but also the broader rural economy that depends heavily on agriculture.
Ensuring Fairness for Farmers: A National Priority
Bangladesh’s potato farmers stand at a critical juncture. An overabundant harvest, which initially promised prosperity, has instead become a double-edged sword as market prices collapse and cold storage fees soar.
With production costs rising and government intervention lagging, the sector faces an uncertain future. As protests continue from Rajshahi to Rangpur and voices of dissent echo in every potato field, it is clear that a comprehensive, coordinated response is urgently needed.
The time for incremental fixes is over; only bold and decisive action can steer the industry away from collapse and secure a stable, prosperous future for the nation’s hardworking farmers.
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