Farmers strain under losses, selling potatoes at half the production cost
Highlights:
- Potato cultivation increased 12% than last year
- Production cost Tk17, selling price Tk7-Tk9
- Cold Storage fees putting additional strain on farmers
- Production increased as prices were high last year
- Peak season stretches from mid-February to March
Despite a 12% increase in potato cultivation compared to last year, farmers are struggling with low prices this season, selling potatoes at nearly half the production cost while also facing higher cold storage fees, leading to significant losses.
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According to the latest update from the Department of Agricultural Marketing, the production cost per kilogram of potatoes stands at Tk17.26, factoring in expenses such as land preparation, fertilisers, seeds, labour, irrigation, pesticides, and land rent.
However, in different parts of the country, farmers are currently selling potatoes at Tk7-9 per kg, while wholesale prices in Dhaka range from Tk15-Tk17 per kg. In the retail market, potatoes are being sold for Tk20-25 per kg.
In Bogura, potatoes are currently being sold at Tk320-Tk380 per maund (42 kg), which translates to Tk7.5-9 per kg, depending on the variety. Shibganj upazila has the highest potato cultivation in the district.
Speaking to TBS, Nafisul Islam, a farmer from Shibganj's Aligram, said, "It costs me Tk40,000-Tk45,000 per bigha to cultivate potatoes, and I expect a yield of around 90 maunds. That means my production cost per maund is nearly Tk450-Tk500, but market prices are half of that. That's why I haven't harvested yet. I plan to store them in a cold storage after a few days."
He added that the rise in cold storage fees has put additional pressure on farmers.
"Last year, I stored potatoes at Tk350 per sack. A sack with a 50 kg label could hold 65 kg of potatoes. But this year, storage costs have increased to Tk8 per kg. With such high storage fees, I have no idea at what price I will be able to sell later," he said.
Abdul Hamid from Fenigram of the same upazila shared a similar experience. He said, "I've cultivated both Pakri and Stick potatoes. On each bigha, I expect a yield of 65-70 maunds of Pakri and about 90 maunds of Stick potatoes.
"I've spent around Tk30,000-Tk35,000 per bigha, but those who buy seeds for cultivation have much higher expenses."
Abdul Hamid further said, "Last year, potato prices were high, which encouraged me to cultivate more land. However, with these current prices, farmers will be left penniless."
For most of last year, potato prices were unusually high, prompting farmers to increase their cultivation in hopes of additional profits. However, now they are unable to even cover production costs.
According to the Department of Agricultural Extension, the Ministry of Agriculture set a target to cultivate potatoes on 4.67 lakh hectares this season. However, the actual area cultivated has already reached 5.24 lakh hectares, exceeding the target by 47,000 hectares.
According to the Bangladesh Bureau of Statistics (BBS), last year, potatoes were cultivated on 4.57 lakh hectares, meaning this year's potato cultivation has increased by 67,000 hectares compared to last year.
From mid-February through the entire month of March, farmers harvest potatoes during the peak season. However, last year, potato prices were high even during the peak season, and by May, the price exceeded Tk50 per kg. In November, prices reached Tk80 per kg, the highest in the past five years.
Abu Taher, a farmer from Nagdah village in Pirganj upazila, Rangpur, said, "Currently, potatoes are selling for Tk10-12 per kg in our area, whereas they were previously sold for as low as Tk8 per kg. Over the past two days, prices have slightly increased, but if it drops below Tk20 per kg, farmers will face losses."
Dr Jahangir Alam, professor of the Department of Business Marketing at Bangladesh Agricultural University, told TBS, "When prices are high in one year, farmers tend to increase production of that crop the following year. Conversely, when prices are low, farmers reduce production. This is a common issue."
"If the yield is high, the prices usually drop. Therefore, training farmers in value addition for potatoes is essential," he said.
He added, "There should be a focus on group marketing, where, for instance, 10 farmers grow potatoes, and one person will be responsible for marketing the produce. This way, farmers will directly connect with the market."
