Cash incentive for potato export to be doubled
Thursday, 18 March 2010
FE Report
Three ministries have agreed in principle to double cash incentive to 20 percent for potato export and help growers get fair price in the wake of buffer production.
This year, potato production is expected to reach 8.0 million tonnes against a target of 7.2 million tonnes. But the country has a capacity to keep only 2.2 million tonnes of potato in both government and private cold storages.
Officials said agriculture, commerce and food ministries on Tuesday night sat in an emergency meeting at agriculture minister's office in Sangsad Bhaban and came to an agreement on encouraging export considering the low capacity of the country's 300 cold storages.
Agriculture Minister Matia chaired the meeting where commerce minister Faruk Khan was also present. Agricultural secretary CQK Mostak Ahmed, commerce secretary Mohammad Golam Hossain and food secretary Mokhlesur Rahman and representatives from Export Promotion Bureau and agriculture extension department attended.
Officials said although Sri Lanka, Malaysia and Singapore have already shown interest in importing potato from Bangladesh, the meeting reviewed the country's demand for the most consumed food item to avoid shortfall at later part of the year.
"The government has to be cautious as there is always difference in production data provided by private sector and the public sector," said the commerce secretary.
He said potato consumption remains high until June when poorer section of the population takes it as their main food.
The secretary said although potato export was never restricted in the country, the government was always alert in avoiding any unwanted situation.
The demand for potato was around 7.0 million tonnes in 2009.
Earlier, the increase of cash incentive on potato export was endorsed by the commerce ministry on the plea made by the Bangladesh cold storage association (BCSA).
Three ministries have agreed in principle to double cash incentive to 20 percent for potato export and help growers get fair price in the wake of buffer production.
This year, potato production is expected to reach 8.0 million tonnes against a target of 7.2 million tonnes. But the country has a capacity to keep only 2.2 million tonnes of potato in both government and private cold storages.
Officials said agriculture, commerce and food ministries on Tuesday night sat in an emergency meeting at agriculture minister's office in Sangsad Bhaban and came to an agreement on encouraging export considering the low capacity of the country's 300 cold storages.
Agriculture Minister Matia chaired the meeting where commerce minister Faruk Khan was also present. Agricultural secretary CQK Mostak Ahmed, commerce secretary Mohammad Golam Hossain and food secretary Mokhlesur Rahman and representatives from Export Promotion Bureau and agriculture extension department attended.
Officials said although Sri Lanka, Malaysia and Singapore have already shown interest in importing potato from Bangladesh, the meeting reviewed the country's demand for the most consumed food item to avoid shortfall at later part of the year.
"The government has to be cautious as there is always difference in production data provided by private sector and the public sector," said the commerce secretary.
He said potato consumption remains high until June when poorer section of the population takes it as their main food.
The secretary said although potato export was never restricted in the country, the government was always alert in avoiding any unwanted situation.
The demand for potato was around 7.0 million tonnes in 2009.
Earlier, the increase of cash incentive on potato export was endorsed by the commerce ministry on the plea made by the Bangladesh cold storage association (BCSA).