Surplus crop sparks potato price crash in Bangladesh

A record potato harvest in Bangladesh this year has led to a large surplus, driving prices down and causing major losses for farmers. Potatoes are now selling for Tk 15–20 per kg (≈ USD $0.14–$0.18) in retail markets, while cold storage gate prices have fallen to Tk 9–11 per kg (≈ USD $0.08–$0.10) — well below the production cost of Tk 15–16 per kg (≈ USD $0.14–$0.15).

The government had announced a support price of Tk 22 per kg (≈ USD $0.20) at cold storage facilities and promised to purchase 50,000 tonnes of potatoes to protect farmers. However, the planned procurement did not happen, which caused the market to weaken further.

According to the Bangladesh Bureau of Statistics, Bangladesh produced about 11.5 million tonnes of potatoes in FY25, around 9% more than the previous year. The country’s annual demand is about 9 million tonnes, including 1 million tonnes for seed and 8 million tonnes for household consumption and food industry use. This means production was higher than what the market can absorb.

Cold storage operators say around 9–10 million tonnes of potatoes remain stored across the country, and some of these stocks are already starting to spoil. Farmers also say that incentives and government purchase commitments have not been executed, leaving them unable to recover their costs.

Despite ongoing losses, farmers in major potato-producing regions — Munshiganj, Rangpur, Bogura, Rajshahi, Naogaon, and Joypurhat — have already begun sowing potatoes for the next season. A new harvest expected from December could push prices down even more if no intervention takes place.

Potato exports have also remained limited, with about 62,000 tonnes exported in FY25, valued at around USD $40 million, offering little relief to the domestic market.

source: newagebd.net

photo: potatobusiness.com