Discover the latest insights into Bangladesh’s potato market, where looming production drops and adverse weather conditions forecast a potential rise in prices. As the Bangladesh Cold Storage Association raises concerns over a significant decrease in potato stocks and warns of possible supply shortages, farmers, agricultural engineers, and stakeholders brace for market turbulence. Explore the implications of import reluctance, investment challenges in cold chain infrastructure, and innovative solutions proposed to mitigate the crisis.
As the potato season unfolds in Bangladesh, stakeholders in the agricultural sector are bracing for significant challenges ahead. The Bangladesh Cold Storage Association has sounded the alarm, predicting a potential surge in potato prices due to adverse weather conditions and a notable decline in production. According to the association’s president, Mostofa Azad Chowdhury Babu, adverse weather could lead to a production drop of at least 20 percent this year, exacerbating an already precarious situation.
Premature selling by farmers has further exacerbated the production gap, with at least 30 percent of potatoes being sold before reaching maturity. This trend, coupled with adverse weather conditions, spells trouble for Bangladesh’s potato market, with consumers likely to face skyrocketing prices. The current farm-level prices have already soared to Tk 27-32 per kg, a significant increase from last year’s maximum of Tk 15 per kg.
In Dhaka, where prices currently stand at Tk 45 per kg, the situation is particularly dire. Despite reaching a record high of Tk 70 per kg in October last year, subsequent price drops have not eased concerns. Even with the authorities permitting potato imports for the first time, importers have been reluctant due to predicted low-profit margins.
Bangladesh, the third-largest potato producer in Asia, produced 11 million tonnes in 2022, according to the Department of Agricultural Marketing. However, with an annual demand of 9 million tonnes, the country teeters on the edge of a potential supply shortage.
To address these challenges, stakeholders are advocating for better access to accurate data on potato production to minimize market disruptions. Cold storage owners have reported significant decreases in potato stocks, with regions like Munshiganj, Thakurgaon, and Rangpur being particularly affected.
Furthermore, challenges in importing cold storage equipment and spare parts have hindered the development of the country’s cold chain infrastructure. Mohammad Asaduzzaman, President of the Bangladesh Refrigeration and Air-conditioning Merchant Association, highlighted the exorbitant import duties, particularly the 130 percent levy on spare parts, as a major obstacle.
In light of these challenges, stakeholders are calling for a reduction in import duties to stimulate investment in cold chain infrastructure. Additionally, the proposal to utilize underused chambers in existing cold storage facilities through a Public-Private Partnership (PPP) model presents a promising avenue for addressing storage concerns.
As Bangladesh navigates the complexities of its potato market, collaborative efforts and innovative solutions will be crucial in ensuring food security and stability in the agricultural sector.
