High prices drive potato cultivation spree, now farmers worry about returns

Summary:

• Farmers expanded potato cultivation by 64,000 hectares compared to 2024.
• Increased cultivation driven by last year's high potato prices.
• Potato cultivation surpassed government targets by 54,000 hectares.
• Cold storage capacity limits could lead to production surplus issues.
• Government considers procurement and export to stabilize the potato market.

Last year's high potato prices have driven farmers across the country to grow more potatoes this season, expanding cultivation by nearly 64,000 hectares compared to 2024. However, they are concerned about whether they will achieve the expected prices.

Md Shohag Ahmed, a farmer in Borobandar, Dinajpur sadar upazila, typically cultivates potatoes on 70-80 decimals of land, with the rest dedicated to maize and other crops. But after last year's high potato prices, he decided to plant potatoes across his entire 1.5-acre (150 decimals) land this season.

"We used to cultivate potatoes on half of the land, but this year, we've cultivated the entire area. We're unsure if the current market prices will cover production costs, but last year's market was better, which motivated us to expand cultivation. Many others in our area have also increased their potato cultivation," he told The Business Standard. 

This year, early potato harvesting has already begun, with 12,000 hectares harvested. As a result, prices have begun to decline, with potatoes currently selling for Tk40 per kg in Dhaka. Further price reductions are expected.

According to the Department of Agricultural Extension (DAE), the Ministry of Agriculture set a target of cultivating potatoes on 4.67 lakh hectares this season. As of Thursday, farmers have cultivated 5.21 lakh hectares, surpassing the target by 54,000 hectares. 

The Bangladesh Bureau of Statistics (BBS) reports that potatoes were grown on 4.57 lakh hectares in 2024, reflecting a 13% increase in cultivation this year.

Worries over potential price drops

Despite the increase in cultivated area, experts are concerned that farmers may not come by the expected prices. They are calling for the government to strengthen market management to prevent losses for both farmers and consumers.

Jannatul Naim, a farmer from Shahjahanpur, Bogura, said, "Seeing good prices, we planted sunshine and red potatoes on 13 bighas (429 decimals) of land, up from 7-8 bighas. Currently, potatoes are sold at Tk15-20 per kg wholesale. The production cost per bigha is Tk70,000-75,000. We expect around 60 maunds per bigha, but if prices drop, we'll suffer losses."

Similar concerns have been voiced by farmers in Munshiganj, Rangpur and Pabna.

Call for govt action to ensure fair prices

Agricultural economist Dr Jahangir Alam Khan told TBS, "Given last year's high potato prices, it's natural that farmers have increased their cultivation. However, if the harvest is large, there's a risk they won't get the prices they expect. The government needs policies to ensure fair prices without causing artificial market shortages."

Khan also emphasised the importance of government procurement: "Potatoes are a major crop for us, and the government should procure them. India procures 23 agricultural products. If the government buys 10% of the potatoes, it will guarantee fair prices for farmers. Additionally, the government can release potatoes into the market if shortages arise, maintaining balance."

With rising industrial demand for potatoes, proper market management becomes critical, he said. 

The agricultural economist noted, "Price control through laws alone won't work as we saw in 2024. Effective implementation and action are needed."

Early harvesting leads to price decline

Farmers typically harvest potatoes between mid-February and March. Last year, potato prices remained high during peak season, surpassing Tk50 per kg by May and peaking at Tk80 per kg in November – the highest in five years.

This year, early potato harvesting has already begun, with 12,000 hectares harvested. As a result, prices have begun to decline, with potatoes currently selling for Tk40 per kg in Dhaka. Further price reductions are expected.

Mostafa Azad Chowdhury Babu, president of the Bangladesh Cold Storage Association, said, "Cold storage capacity is 45 lakh tonnes and farmers can store another 35-45 lakh tonnes until May-June. If production exceeds 90 lakh tonnes, the government should consider export options to ensure fair prices. 

"The government must assess the exact production figures and make informed decisions," he added.

Regarding potato procurement, Dr Mohammad Emdad Ullah Mian, Secretary of the Ministry of Agriculture, told TBS, "Farmers are more interested in cultivating potatoes due to last year's high prices. We're still unsure of the exact production numbers as harvesting is ongoing. Procurement decisions will be made once we know if production exceeds demand."