Potato stock adequate, retail price should be Tk35-36: Govt body
The director general said that currently potatoes are being sold at Tk50 per kg at the retail level
The head of the government agency responsible for safeguarding consumer rights has expressed frustration over the high potato prices, emphasising that Tk35-36 per kg should be the maximum retail price.
"There is no likelihood of a crisis in the country until next December, given the current ample potato stock," said AHM Shafiquzzaman, director general of the Directorate of National Consumer Rights Protection, on Tuesday.
He came up with the comments after a view-exchange meeting with various levels of traders involved in the potato business and those involved in production.
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The director general said that currently potatoes are being sold at Tk50 per kg at the retail level.
According to data from the Bangladesh Cold Storage Association presented at the meeting, the country currently maintains a potato stock of 11-12 lakh tonnes, ensuring there will be no crisis until next December.
AHM Shafiquzzaman said, "Everyone agrees on one thing: there is no potato shortage. An artificial crisis has rather been created in the potato market. Now, drives will continue against those responsible for creating instability. Tomorrow, monitoring will commence in 15 districts under the supervision of deputy commissioners."
He stated that an artificial marketing crisis has been orchestrated due to the lack of a modern marketing system.
Mahmoodul Hasan, deputy head of the Bangladesh Trade and Tariff Commission, noted that data from the Bangladesh Bureau of Statistics (BBS) showed that potato production is supposed to be 14 lakh tonnes in surplus compared to demand.
"Additionally, exports are lower compared to last year. Given this situation, there is limited room for daily price increases. To address this, it is crucial to implement printed receipts at the cold storage stages," he added.
Mostofa Azad Chowdhury Babu, president of the Bangladesh Cold Storage Association, said, "The collective potato stockpile in cold storages, owned by association members and others, exceeds 12 lakh tonnes. Therefore, there will be no crisis until the new potato yield begins in December."
He did note, however, that the government's production figures are inaccurate; this year's potato production does not exceed 85 lakh tonnes. It is advisable to review the reports provided by government departments.
The businessman pointed out, "The Department of Agricultural Marketing's report indicates that the potato stock in cold storage was two lakh tonnes lower than last year. We have also observed a 20% vacancy in storage facilities this year."
"In May, potato price stood at Tk25-27 per kg at the cold storage gate, but it has now surged to Tk38. This price increase has occurred every two days, and those responsible for this sudden spike should be held accountable since Tk18-20 priced potatoes should not exceed Tk35-36 in retail prices. Currently, there is an additional profit margin of at least Tk10 per kg," he emphasised.
Azad Chowdhury said government offices situated in Dhaka call and ask for information about cold storages, but this monitoring does not take place if they do not go there in the field.
Sirajul Islam, director at the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), said, "Traders are withholding potatoes in cold storage rather than releasing them, anticipating further price hikes."
"If they do not release the potatoes, we will initiate the release process starting in October. We will pay them the price of their potatoes, deducting the rent. This practice of withholding potatoes in cold storage is contributing to market instability," he added.
Humayun Kabir Bhuiyan, general secretary of the Consumers Association of Bangladesh, complained that certain businessmen are capitalising on market volatility. ***
