Potato exports thru Ctg Port fall by 45% despite bumper yield

The export of potatoes through the Chattogram Port has dropped significantly despite a bumper yield of the crop this year, owing to various reasons, including price rise, sub-standard packaging, product quality deficiency, and the fluctuating taka-dollar exchange rate.

According to data from the Plant Quarantine Station of Chattogram Port, potato exports through the port fell by 45% in FY23, compared to the corresponding period of FY22. The port shipped 29,560 tonnes of potatoes in FY23, down by 24,967 tonnes from 54,527 tonnes exported in FY22. 

Data shows that 95% of the country's exportable potatoes are shipped through the Chattogram Port.

Md Rashed Shamim Chowdhury, managing director of Alubari Agro Produce Ltd, told The Business Standard, "Earlier, we collected potatoes at the farmer level for export at Tk15-17 a kg, which later increased to Tk30. In the last fiscal year, we had to cancel the order of around 400 tonnes of potatoes due to the increase in prices".

"Along with the quality of potato, the quality of packaging should also be increased," he said, adding, "The sector will advance further if the government provides duty-free facilities for the import of raw materials for potato packaging".

Alubari Agro has set up a factory for potato grading in Rangpur on its own initiative, Rashed said.

According to the Department of Agricultural Marketing, 1.11 crore tonnes of potatoes have been produced in the country this year, against the annual domestic demand of 89.92 lakh tonnes. 

Md Mozibar Rahman, senior marketing officer of the Department of Agricultural Marketing, told TBS that even though the production of potatoes is more than the domestic demand, an unscrupulous quarter has created an artificial crisis, and increased potato prices, leading to the decline in exports in FY23.

"Compared to other countries, the exportable potatoes of Bangladesh lagged behind in terms of quality," he said, adding that the Bangladesh Agricultural Development Corporation (BADC) has developed several improved varieties of potato, which are expected to go on export within two years.

Dr Shaikh Abdul Quader, president of the Bangladesh Potato Exporter Association, said, "At present, the exchange rate of dollars is Rs274 [Pakistani rupee] and Tk108. Due to the appreciation of the Pakistani rupee against the dollar, the country's exporters are able to export potatoes at a lower price. Importing countries are also now importing potatoes from Pakistan. In addition to the increase in the potato price in Bangladesh, the dollar fluctuation is also a major reason for the decline in potato exports".

Imran Hossain, assistant director of Shaon Traders, a vegetable and fruit exporter based in Satkhira told TBS that they exported 250 tonnes of potatoes in FY22, which decreased to 50 tonnes in FY23.

"Pakistan supplied better quality and packaged potatoes at lower prices than Bangladesh. Because of this, potato importers from other countries, including Malaysia, have reduced their potato collection from Bangladesh," he added.

However, Bangladesh usually exports Ganala, Diamond, Manila and Red varieties of potatoes.

Potato exporters also underscored the need for technological support and research to enhance the quality of potatoes, and also to expand the potato export sector as the production of the crop is increasing almost every year.