Farmers in peril as potatoes sell at half the production cost

Potato farmers are struggling with multiple challenges, including rock-bottom prices that barely cover half the production costs and rising cold storage fees, resulting in substantial losses amid a 14% increase in cultivation this season.

According to the latest update from the Department of Agricultural Marketing, potato production costs Tk17.26 per kg, accounting for land preparation, fertilisers, seeds, labour, irrigation, pesticides, and rent.

However, farmers said the real production cost is around Tk20-Tk22.

However, farmers in different parts of the country are currently selling potatoes at Tk10-14 per kg, while wholesale prices in Dhaka range from Tk18-Tk20 and retail prices stand at Tk25.

In Bogura, potatoes sell for Tk400-450 per maund (42kg), or Tk10-11 per kg, depending on the variety. Shibganj upazila leads in cultivation.

Speaking to The Business Standard, Nafisul Islam, a farmer from Shibganj's Aligram on Saturday, said, "It costs me Tk40,000-Tk45,000 per bigha to cultivate potatoes on my own land, and I expect a yield of around 90 maunds. That means my production cost per maund is nearly Tk500. That's why I haven't harvested yet. I plan to store them in a cold storage after a few days."

He added that the rise in cold storage fees has put additional pressure on farmers. 

"Last year, I stored potatoes at Tk350 per sack. A sack with a 50kg label could hold 65kg of potatoes. But this year, storage costs have increased to Tk8 per kg. With such high storage fees, I have no idea at what price I will be able to sell later," he said.

Abdul Hamid from Fenigram of the same upazila shared a similar experience. He said, "I've cultivated both Pakri and Stick potatoes. On each bigha, I expect a yield of 65-70 maunds of Pakri and about 90 maunds of Stick potatoes.

"I've spent around Tk30,000-Tk35,000 per bigha, but those who buy seeds for cultivation have much higher expenses."

Abdul Hamid further said, "Last year, potato prices were high, which encouraged me to cultivate more land. However, with these current prices, farmers will be left penniless."

For most of last year, potato prices were unusually high, prompting farmers to increase their cultivation in hopes of additional profits. However, now they are unable to even cover production costs.

According to the Department of Agricultural Extension, the Ministry of Agriculture set a target to cultivate potatoes on 4.67 lakh hectares this season. However, the actual area cultivated has already reached a record 5.24 lakh hectares, exceeding the target by 47,000 hectares.

According to the Bangladesh Bureau of Statistics (BBS), last year, potatoes were cultivated on 4.57 lakh hectares, meaning this year's potato cultivation has increased by 67,000 hectares compared to last year.

From mid-February through the entire month of March, farmers harvest potatoes during the peak season. However, last year, potato prices were high even during the peak season, and by May, the price exceeded Tk50 per kg. In November, prices reached Tk80 per kg, the highest in the past five years.

Abu Taher, a farmer from Nagdah village in Pirganj upazila, Rangpur, said, "Currently, potatoes are selling for Tk10-Tk12 per kg in our area, whereas they were previously sold for as low as Tk8 per kg. Over the past two days, prices have slightly increased, but if it drops below Tk20 per kg, farmers will face losses."

Jahangir Alam, professor of the Department of Business Marketing at Bangladesh Agricultural University, told TBS, "When prices are high in one year, farmers tend to increase production of that crop the following year. Conversely, when prices are low, farmers reduce production. This is a common issue."

"If the yield is high, the prices usually drop. Therefore, training farmers in value addition for potatoes is essential," he said.

He added, "There should be a focus on group marketing, where, for instance, 10 farmers grow potatoes, and one person will be responsible for marketing the produce. This way, farmers will directly connect with the market."