Potato glut leaves farmers in debt

Farmers in Rangpur are facing mounting financial distress as potato prices remain far below production and storage costs, leaving hundreds of thousands of tonnes of the crop unsold in cold stores.

With the government’s prescribed price failing to influence the market, growers risk losses of at least Tk 320 crore on stocks left over from the previous season, raising concerns about market instability and the absence of effective price-support measures.

Farmers and cold storage operators say the situation has exposed a serious gap between official price directives and market realities.

While the government fixed the procurement price of potatoes at Tk 22 per kilogram for stocks held in cold storage from August 27, market prices have fallen to around Tk 10-13 per kg. Stakeholders say the lack of effective monitoring and intervention has left farmers bearing the brunt of the price collapse.

According to representatives of the Bangladesh Cold Storage Association and local farmers, potato production costs-including seeds, fertilisers, pesticides, irrigation and other inputs-stand at around Tk 22 per kg.

Storage adds another Tk 7 per kg, taking the combined cost to approximately Tk 29. With potatoes selling for much less, growers face substantial losses even if they manage to sell their produce.

Around 200,000 tonnes of potatoes from the previous year remain uncollected in 116 cold storage facilities across the Rangpur division, accounting for estimated losses of Tk 320 crore for farmers, according to local stakeholders.

When asked about the losses and possible remedial measures, Agriculture, Fisheries and Livestock Minister Aminur Rashid Yasin told The New Nation, “I have not received any such complaints. I will look into the matter and take appropriate action.”

Data from the Department of Agricultural Extension show that 3,230,682 tonnes of potatoes were produced on 119,739 hectares in the Rangpur agricultural region during the current season. After initial sales, 1,109,692 tonnes were stored in the division’s 116 cold stores.

As the season draws to a close, 936,283 tonnes remain in storage, putting further pressure on farmers and storage operators amid weak prices.

The distress has pushed many growers to the brink of financial ruin, with some struggling to repay loans and recover their investment. “Cultivating potatoes has brought us to the brink of the grave.

Our capital and savings are completely exhausted. We are now facing a desperate situation, crushed under the burden of debt,” farmers said, expressing frustration over the continued price slump.

The Department of Agricultural Marketing says the government-set price of Tk 22 per kg cannot be enforced because sellers are unable to find buyers at that rate.

The gap between the official price and prevailing market rates has fuelled concerns that, without measures to improve demand or support growers, the glut could deepen and lead to further losses.

Majedul Islam, manager of Rangpur Krishan Cold Storage, said the government had yet to take any significant steps to address the unsold stocks.

If farmers fail to collect their potatoes, he warned, both growers and cold storage operators could suffer further losses, with some produce potentially remaining in storage indefinitely.

Cold storage operators are also under pressure as low prices discourage farmers from taking out their stocks. Mostafa Azad Chowdhury Babu, president of the Bangladesh Cold Storage Association, said potato prices had fallen to as low as Tk 13 per kg, slowing the release of stored produce.

With production costs hovering around Tk 25 per kg, many farmers are reluctant to retrieve their potatoes because doing so could increase their losses.

“If farmers do not retrieve their potatoes, we lose out on rental income, while the continued operation of machinery to prevent spoilage only adds to our operational costs,” he said.

The government should provide subsidies to farmers and, if necessary, purchase some of the potato stocks, he added.

Tayebur Rahman, president of the Rangpur Potato Farmers and Traders Association, said high storage charges were compounding farmers’ difficulties. Despite repeated demands for a reduction, cold storage owners had not agreed to lower their fees.

“We have requested that the rental rate be set at Tk 5 per kilogram; this would at least help mitigate some of our losses,” he said.

N.M. Alamgir Badsha, deputy director of the Rangpur Department of Agricultural Marketing, reiterated that the government-set price could not be enforced because sellers were struggling to find buyers.

Agricultural experts say the recurring crisis cannot be resolved through price declarations alone.

They call for planned cultivation based on demand forecasts, greater diversification of potato-based products and a sustainable strategy to expand exports and develop overseas markets.

They argue that stronger coordination among farmers, traders, storage operators and government agencies, alongside continuous market monitoring and effective price-support measures, is essential to prevent bumper harvests from turning into financial disasters for growers.

Without such steps, the growing mismatch between production, storage and demand could prolong the glut and further undermine farmers’ livelihoods.