Potatoes are selling for about Tk 2.0 per kg (kilogram) at the level of the growers. In the capital, the same potatoes are being sold at Tk 10/15 per kg. Producers are upset as they are not in a position to recover the cost of production. On the other hand, the consumers are purchasing the vegetable at a relatively high price. The middlemen are getting a good margin.
Traders at Kawran Bazar in the capital say that they are also losing money as they can not store potatoes because of its perishable nature. Availability of potatoes is much more than demand. Transportation cost is high.
This year, the production of potato is estimated at 860 thousand (86 lakh) tonnes. In many places, potato has not yet been collected from the fields. The cost of production of potato is estimated at Tk 6/7 per kg, but the price in the local wholesale market is around Tk 2.0. For fear of loss, many growers are not harvesting potato from the fields.
The growers did not harvest potatoes in early January due to hartal and blockade programmes, which resulted in the breakdown of the transportation system. Those who harvested potato at that time could not market the crop anywhere. When hartal and blockade ended and transportation system became normal, supply of potatoes increased suddenly. This was the reason for the fall in the price of potatoes at the level of growers.
At Kawran Bazar, different varieties of potatoes were sold at Tk 10 to Tk 8.0 per kg on February 07. The price was even lower if five kg of the vegetable was bought at a time. One wholesaler reported that he had purchased 15 tonnes of potato from Thakurgaon a week ago. At that spot the cost increased by Tk 1.0 per kg for meeting the cost of sacks, labourers and 'dalals' (middlemen). A truck of potatoes bound for Dhaka cost Tk 26,000. Fifty paisa was charged per kg to take the potatoes to warehouses. Altogether, the costs came to Tk 4.0 to Tk 4.50 per kg.
A farmer in Dinajpur made a profit of Tk 150 thousand (1.5 lakh) last year from the potatoes he had grown on his land. This time around he had been avoiding harvesting for the past one month hoping that prices would rebound and loss would reduce. But this did not happen. The prices continued to slide because of the release of potatoes from cold storages and the glut of fresh produce. This is not an isolated story.
The country is experiencing a bumper production of potatoes. Although the crop has not been fully harvested, the growers are disappointed due to the falling prices in the market. There are not adequate cold storages in the country to preserve potatoes. Moreover, there is a backlog of potatoes stored in 2013. Prices are continuously falling. Besides, the prices of agricultural inputs like seeds, pesticides and fertilisers are high which has contributed to the miseries of potato growers.
The Agricultural Extension Directorate said that potato plants were attacked by fungus. Adulterated fertilisers did the most damage. According to tests carried out by Soil Research Development Institute (SRDI), nearly 40 per cent of all fertilisers used by farmers are adulterated. Unscrupulous businessmen indulge in adulterating various types of fertiliser during planting seasons. Mixing of harmful chemical substances with fertilisers degrades the fertility of land and causes health hazards to humans. Farmers are cheated by this and production suffers. The authorities should take necessary steps to stop this harmful practice.
According to the Bangladesh Cold Storage Association, there are at present 370 cold storages in the country which can store about 4.6 million tonnes of potatoes. According to another estimate, there are 400 cold storages which can store about 5.0 million tonnes of potatoes. But cold storages are not in a position to offer adequate space to growers willing to store potatoes with a view to selling the same at a higher price later. Currently, 1.0 to 1.5 million tonnes of potatoes are lying unsold in cold storages. Farmers are reluctant to release old potatoes from cold storages since prices have fallen drastically. The cold storage owners are unable to recover their rent-money by selling the potatoes. So, both the growers and cold storage owners are facing difficulties.
The government departments concerned are not saying anything about the situation. It is possible to talk about the pragmatic price support measures for growers. Preservation of potatoes outside cold storages at local level may also be discussed.
The government may come forward with suggestions. Import of potatoes from the neighbouring country may be discouraged. Potato processing industries may be encouraged by giving them bank loans and other support.
It is necessary to explore the possibility of exporting potatoes in sufficient quantities on emergency basis. Potato was exported in the past in limited quantities to countries like Malaysia, Sri Lanka, Singapore and Brunei. Europe and Middle Eastern countries are also possible destinations. The Export Promotion Bureau may assist in the process of marketing and export. India is giving 50 per cent cash incentives to potato exports, whereas Bangladesh is granting only 20 per cent subsidy.
Many potato growers stockpile the produce in the fields and sell it to the middlemen through credit which leads to complications later. Out of frustration, some of growers may decide not to go for potato cultivation next year/season.
The Palli Karmo Sangsthan Foundation is reportedly assisting the potato processing industry. This has to be strengthened for helping the growers and the entrepreneurs. The private sector should be encouraged to establish potato processing industries.
The agencies concerned should look into all the issues relevant to marketing of farm produce and ensuring fair prices for growers. If an efficient agricultural marketing system is put in place, the role of the middlemen may be reduced. This will ensure fair price to the growers.
The writer is an economist and columnist. [email protected]
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