Seed potato consumption raises fears of reduced cultivation
According to agricultural marketing department data, the seed potato stock declined to 5.67 lakh tonnes by late October, against the annual demand of 7.5 lakh tonnes
Concerns are growing about a potential reduction in potato cultivation in the next season – beginning in December – as seed potatoes are being consumed amid high prices and a shortage in the supply of the tuber.
According to agricultural marketing department data, the seed potato stock declined to 5.67 lakh tonnes by late October, against the annual demand of 7.5 lakh tonnes, indicating that nearly two lakh tonnes had been consumed as food.
At the time, the stock of regular potatoes was 3.20 lakh tonnes, according to data sent to the agriculture ministry, said officials knowledgeable about the development.
In such circumstances, officials and experts have been expressing fears of a potential shortfall in potato production in the upcoming season.
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Ali Afzal, secretary general of the Bangladesh Seed Association, told The Business Standard, "While regular potatoes are selling at Tk75 or more per kg, many companies are selling seed potatoes at Tk69-78 per kg, leading to some being used as food."
He warned this could cause a significant shortage of seed potatoes.
Afzal also stressed the need for proper storage, noting that farmers have a limited supply, supplemented by the Bangladesh Agricultural Development Corporation and the private sector.
Additionally, 20,000-30,000 tonnes of seeds are imported annually, but the current situation poses challenges for timely imports, prompting entrepreneurs to seek quick solutions for opening letters of credit.
According to the Bangladesh Bureau of Statistics (BBS), potatoes were cultivated on 4.57 lakh hectares of land in fiscal 2023-24, yielding 1.06 crore tonnes. However, the Bangladesh Cold Storage Association claims that production was only 80-85 lakh tonnes.
Mostafa Azad Chowdhury Babu, president of the association, told TBS, "On the one hand, potato production has decreased, which is why prices are high in the market. On the other hand, because of these high prices, many seed potatoes have been and are being used as food potatoes."
"The agriculture ministry, however, has directed us to maintain an adequate supply of seed potatoes," he added.
According to commerce ministry data, the country's potato consumption demand is nearly 90 lakh tonnes, with an additional demand of 7.5 lakh tonnes for seed potatoes.
Typically, potato prices range between Tk20-30 during the production season, rising to Tk45-50 at the end of the season. However, since this year's production season, prices have surged, now reaching Tk70-75.
In response, the government has eased imports by reducing duties, but this has not succeeded in controlling the market.
According to the Plant Protection Wing of the Department of Agricultural Extension (DAE), 4.55 lakh tonnes of potato import permits were issued from January to 12 November, yet only 41,000 tonnes have been imported.
The DAE says last year's natural disasters have affected Bangladesh's ability to stabilise the market, despite regular imports in place of exports.
The DAE reports that shortages are evident not only in seed potatoes but also in regular potatoes. Due to two rounds of floods and heavy rainfall, farmers have planted fewer potatoes than usual this year. Normally, new potatoes arrive in November, but the quantity this year is very low.
According to a Trading Corporation of Bangladesh (TCB) market analysis, prices are currently 35.92% higher than during the same period last year.
Against this backdrop, a meeting was held on 12 November in the agriculture ministry, chaired by the ministry secretary, to address the seed potato crisis, with government and private sector stakeholders present.
The review of seed and food potato data led to a directive for the DAE to provide accurate information on the availability of seed potatoes and to ensure that they are not used as food.
At the meeting, Agriculture Secretary Mohammad Emdad Ullah Mian instructed officials to ensure proper storage and accurate tracking of seed potatoes at both public and private levels as soon as possible. He also directed the DAE to strengthen oversight to prevent the use of seed potatoes for other purposes.
Analysts estimate that the current potato stock in cold storage is slightly over two lakh tonnes, which may last until the first week of December. However, a good supply of early potatoes is expected to reach the market by 10 December. ***
