Potato prices in country continue to rise despite surplus production
DESPITE an excess in potato yield, prices in Bangladesh’s domestic market have seen a steady increase, impacting consumers, particularly those from lower-income groups.
The country produced 10.6 million tonnes of potatoes last season, ranking it as the third most consumed agricultural product. However, with a 20% estimated production loss, the market’s net supply is approximately 8.48 million tonnes. This, against a national annual requirement of about 8.1 million tonnes, suggests a surplus of around 0.38 million tonnes.
Even with this surplus, retail prices have oscillated between Tk 60 and Tk 70 per kg. A recent reduction to Tk 60 per kg, following a tax cut on imports by the interim government, aimed at stabilising prices amidst inflation exceeding 10 percent.
Dr Md Abu Zafar Al Munsur from the Department of Agricultural Extension (DAE) emphasised that the current production aligns with the annual demand, based on a per capita daily consumption of 130 grams.
Price fluctuations are apparent, with costs peaking at Tk 56 per kg during the September-December 2023 period, before dropping to Tk 29 per kg by February after the harvest.
The DAE, the Bangladesh Bureau of Statistics (BBS), and the Space Research and Remote Sensing Organisation (SPARSO) collaborate to determine production statistics, with the estimated per capita consumption being higher than previous reports due to industrial and non-human uses.
Md Akter Hasan, a joint director at the BBS, said: “We have observed a gap between potato production and its annual demand. According to production statistics, there should be a surplus, but market conditions suggest otherwise.”
Discrepancies in population data have been highlighted as a potential issue affecting these figures. The government’s response to the price surge included importing 0.53 million tonnes of potatoes in the past fiscal year, though this had minimal impact on prices. Critiques of BBS data accuracy have prompted a review of data production methods.
Growers have faced a 75% increase in seed prices, affecting production costs. Despite the surplus, high domestic prices have hindered potato exports, leading to losses in foreign currency earnings. The government and related agencies are working to address these challenges and stabilise the potato market in Bangladesh.
Ekramul Hoque, a grower from Rajshahi, said: “I bought potato seeds at Tk 70 per kg last season, compared to Tk 40 previously.” He said his production costs are around Tk 22 per kg, while the DAE estimates a national average of Tk 19 per kg, reflecting regional variations.
This year’s poor potato export performance, a new diversified product in the export basket, attributed to high domestic prices, has led to losses in foreign currency earnings.
Proprietor of Agrofresh Exports in Dhaka, Ms Afroza Khatoon, said despite receiving numerous orders, she has been unable to meet demand because of limited supply.
“Prices were too high, which is why I couldn’t fulfil many orders,” she added.
Source: The Financial Express Photo: Muneeb Ul Hassan Khan
