Govt seeks three-year potato stock records from cold stores

The surge in potato prices to a four-year high has compelled the government to ask for stock records of private cold-storage facilities across Bangladesh by September 7.
The Ministry of Commerce has instructed the Bangladesh Cold Storage Association (BCSA) to provide potato stock records for the last three years, spanning from 2021 to 2023, by Thursday.
A senior official at the commerce ministry confirmed that they have sent a letter with a prescribed chart to the association for compliance.
The price of potatoes has risen to Tk 45-55 per kilogram in Dhaka and other parts of the country in recent weeks.
The current price is more than 61 per cent higher than a year ago and marks the highest level in four years since the August-October 2020 period, according to the Trading Corporation of Bangladesh (TCB).
The senior commerce ministry official said the association is required to provide records at the start of the season in January, followed by records for the months of September, October, November and December for the three years.
The government will take immediate action upon receiving the records to establish checks and balances in the potato market, he added.
Contacted, Mostafa Azad Chowdhury Babu, president of the association, acknowledged that traders who store potatoes in cold storage facilities have significantly increased prices.
He noted that the gate price for cold-stored potatoes has now risen to Tk 35, which he finds illogical considering that the season began with prices at Tk 16-18 per kilogram.
Mr Babu mentioned that the association has received the ministry letter and has already forwarded it to all member cold stores to provide feedback.
He also said they have verbally urged the commerce ministry to involve the National Board of Revenue (NBR) to verify the purchase prices of the traders and determine their profits from the price hikes.
"We are prepared to provide a list of traders who stored potatoes in cold stores, along with details of how much they preserved or sold," he added.
Meanwhile, the rising price of table potatoes has also driven up seed potato prices to Tk 70-90 per kilogram, marking a 40-45 per cent increase compared to last year, according to farmers interviewed by the FE recently.
Market experts said the increase in potato seed prices may lead to a rise in production costs of Tk 2.0 per kilogram.
In August 2020, potato prices reached an all-time high of Tk 60-65 per kilogram due to a decline in production and market manipulation by unscrupulous traders and cold storage owners, said Prof Gazi M Jalil, a farm economist and supply chain expert.
During that time, the Department of Agricultural Marketing (DAM) had set prices for potatoes at the cold storage, wholesale and retail levels.
In the same year, the agriculture ministry claimed a record production of 10 million tonnes, while traders claimed there was a decline in output.
Later in the year, the Bangladesh Bureau of Statistics (BBS) revealed a production figure of 9.65 million tonnes.
Prof Jalil pointed out that aside from the fall in production, traders and cold storage owners took advantage of the situation and raised prices to record levels.
"But this year is different as production has increased by 0.3 million tonnes to 10.4 million tonnes, according to BBS data," he added.
Despite the increase in production, traders have raised prices nearly twofold in just four months without any apparent reason, he noted.
The maximum demand for potatoes in the country is 8.5 million tonnes including 0.8 million tonnes for seeds.
Prof Jalil said immediate action should be taken by the Ministry of Commerce, while the DAM should set a maximum retail price (MRP) for potatoes to ensure affordability for millions of poor families.

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