Potato prices won’t go beyond Tk 40/kg: BCSA
Staff Reporter :
No force will be able to raise potato prices above Tk 40 per kilogram during the upcoming lean season, asserted Mostafa Azad Chowdhury Babu, president of the Bangladesh Cold Storage Association (BCSA).
“I am making this claim in advance. If I am proven wrong, you can hold me accountable.
If potato prices exceed Tk 40 per kg, we will offer a reward from the BCSA,” he stated at a press conference today held at the association’s office in Purana Paltan, Dhaka. Discussions at the event centred on potato storage and cold storage rental fees.
Potato storage is set to begin by the end of February, following the harvest season, which runs from February to April. Potatoes are typically planted between October and November in Bangladesh.
In November last year, potatoes were selling at prices as high as Tk 80 per kg in Dhaka, according to the state-run Trading Corporation of Bangladesh (TCB). However, Babu claimed that potato cultivation has increased by 40 per cent this season compared to the previous year.
According to data from the Department of Agricultural Extension, around 4.65 lakh hectares of land have been brought under potato cultivation this season, compared to 4.50 lakh hectares last year. Babu also projected a production of 1.2 crore tonnes of potatoes this year against a domestic demand of 90 lakh tonnes.
The BCSA president announced an increase in cold storage rental fees, which have risen from Tk 7 to Tk 8 per kg to account for rising operational costs. He dismissed recent protests by certain groups who claim rental fees have doubled, calling their statements misleading and aimed at creating confusion among stakeholders.
He explained that operational expenses for cold storage facilities have increased significantly, including higher costs for electricity, loading and unloading, sack replacements, staff salaries in line with the minimum wage board, bonuses, insurance, ammonia gas, lubricants, machinery maintenance, and other essentials.
Additionally, he noted that the interest rate on bank loans for cold storage operations has climbed to nearly 15 per cent, with an additional 2 per cent penalty applied for late payments, resulting in a total interest rate of 17 per cent.
Babu emphasised that 70-80 per cent of the potatoes stored in cold storage this year will belong to farmers, countering concerns that traders will dominate storage facilities. However, he highlighted the importance of maintaining balance in the market, stating, “If traders refrain from purchasing potatoes, to whom will farmers sell their produce?”
He urged stakeholders to acknowledge the challenges faced by the cold storage industry and the need to ensure stability in the market for the benefit of both farmers and consumers.