Traders are hesitating to import potatoes despite concerns about a possible decrease in domestic production, which could lead opportunists to speculate on this commodity.
Designated importers are showing a strategy of low profit margins due to the arrival of new harvests in the domestic market.
The government issued import permits for traders to bring in 0.159 million tonnes of potatoes since late October 2023 after a significant price increase in Bangladesh, reaching Tk 60-70 per kilogram, a new record.
This was the first time the Ministry of Agriculture approved potato imports.
However, despite the import permits, only 3,150 tonnes of potatoes were imported until March 24, as reported by the Plant Quarantine Wing under the Ministry of Agriculture, which is responsible for certifying imports and exports of agricultural produce.
An importer in Dinajpur mentioned that the potato prices in West Dinajpur of West Bengal and neighboring districts are now nearly the same as in Bangladesh. Considering transportation costs and crop losses, making even a 5.0 percent profit is challenging.
The local market is active with wholesale prices in Dinajpur, Rangpur, and Nilphamari ranging from Tk 27-30 per kilogram, almost 20 percent higher than last year. Despite this, import costs are still slightly higher.
Securing dollars at the government rate is crucial for imports, which is currently difficult, according to the trader.
The Department of Agricultural Extension reported that potato production was 10.4 million tonnes last year, with a target of 11.6 million this year. Farmers have harvested 9.0 million tonnes so far, reaching 84 percent of the target.
An official from the Bangladesh Potato Exporters Association mentioned that late blight has affected potato fields in Rangpur and Rajshahi due to cold spells in January and February. They urge the DAE to provide accurate information on crop blight and its impact on potato production this year.
He says northern districts might have been attacked by blights to some extent, but another hub, Munshiganj, is giving sound production this year.
Value-chain-expert Prof Golam Hafiz Kennedy says apart from the fungal disease, farmers’ tendency to pluck immature potatoes in the January-February period to avoid losses followed by any potential fall in prices is also expected to cause consumer hardship this year.
Farmers harvested potatoes weighing 30-40 grams against their usual weight of above 100 grams. He suggests that proper production data should be provided by the Bangladesh Bureau of Statistics (BBS) and the DAE at the end of the harvest this month for effective market management.
Meanwhile, potato prices in city markets have seen a Tk 10-15 per kilogram increase in the last ten days, with cardinal and diamant varieties retailing at Tk 45-50, and BARI alu 29 variety (known as ‘carriage’) at Tk 60-65 per kilogram on Monday.
