Farmers in a fix as seed potato prices skyrocket

Farmers are in a bind as seed-potato prices have skyrocketed to Tk 70-Tk 90 per kilogram, which is set to raise the production cost of the tuber crop to a new high this year, insiders said.
A large number of medium-and large-scale farmers, who typically preserve seed potatoes of above 75 per cent of the produce, sold the item as table potato in June-July, fetching a good price, which is affecting the potato-seed markets, according to the insiders.
Table-potato prices in the city have increased further by Tk 5.0 per kg to reach Tk 45-Tk 50 per kg - 61-percent higher than a year ago.
Mubarak Hossain Shah, a potato farmer from Kishoreganj upazila in Nilphamari, told The Financial Express that his region produces 60 per cent of the early variety of local potato (known as desi red, desi lal or pakri), which will be available in the market from the first week of November.
The price of desi potato seed has increased to Tk 90 per kg, up from Tk 55 per kg last year. He said the higher cost of seed could increase the production cost by 50 per cent.
Hamidur Rahman Mridha, a farmer from Shatibari, Mithapukur in Rangpur, said the seasonal potato cultivation will begin in mid-October and harvest will begin in January. Farmers have already started to source granola, diamante and cardinal varieties of seed.
He said most of the farmer-cum-traders sold out their potato seed, stored in cold storages, in June and July as they got good prices. Farmers need 160-165 kg of seed potato for 33 decimals or one bigha of land.
According to Mridha, the cost of seed could rise by Tk 4,000 to Tk 4,500 per bigha, as he said dealers are selling branded seeds at Tk 70-75 per kg.
Ashek Hossain, a seed dealer at Sherpur in Bogura, said the price could increase further in the coming months following the price of table potato. Seed companies such as Brac, Supreme and Mallika have yet to supply them with seeds.
Mujibur Rahman, Assistant General Manager (Potato Seed Division) of the Bangladesh Agricultural Development Corporation (BADC), admitted that there is a shortage of potato seeds this year, as medium and large-scale farmers sold their seeds as table potatoes in June-July to fetch a good price.
Rahman said farmers will have to depend on companies for seeds this year. The Corporation has a target to distribute 36,000 tonnes of seed potatoes this year.
"We will fix the price of seed potatoes within two weeks," he said.
Abul Mansur Leon, assistant general manager of leading Brac Seed and Agro Enterprise, told The Financial Express that his company has a target to sell 20,000 tonnes of potato seed this year.
He said Brac will distribute the seeds after October 20 to ensure quality production. The price of seed potatoes is mainly fixed according to the price of table potatoes.
"If you fix the price of seed potatoes below that of table potatoes, all the seeds will be sold in the retail market for daily consumption," he explained.
Farm economist Prof Gazi M Jalil said potato production may have declined this year, which is being reflected in the market.
"The Bangladesh Bureau of Statistics should publish potato production data immediately so that the government can take appropriate policy measures," he said.
He said the potato seed market is usually stable, as 80 per cent of the market is still dominated by farmers themselves. However, he said, companies could take control of the market this year.
He said the production cost could increase by Tk 2.0 per kg due to the hike in seed potato prices.
"The government should look into the matter immediately to ensure potato seeds at a rational rate for the farmers," he said.
According to BADC, the total demand for potato seeds in the country is about 0.77 million tonnes, of which private companies hold 15-20 per cent of the market share, BADC provides 5.0 per cent and the rest is supplied by farmers themselves.
Bangladesh produces 10 million tonnes of potatoes annually on 0.46 million hectares of land, making it the seventh-largest potato producer in the world.

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