Al Amin :
Traders have displayed a puzzling reluctance to import potatoes despite forecasts suggesting a potential decrease in domestic production this season, a situation economists believe could entice profiteers to capitalize on this commodity.
“One ploy is obvious from the designated importers’ side: low profit margins and the beginning of arrivals of new harvest on the domestic market,” highlights the concerns around importing potatoes.
In response to a sharp increase in potato prices, which soared to Tk 60-70 per kg, marking a new record, the government granted import permits (IPs) to traders for bringing in 0.159 million tonnes of this staple vegetable since late October 2023.
This initiative marked the first occasion the Ministry of Agriculture (MoA) authorized potato imports.
However, a startlingly low volume of 3,150 tonnes of potatoes has been imported as of March 24, according to data from the Plant Quarantine Wing (PQW) under the MoA, the entity responsible for certifying the import and export of all agricultural produce.
A Dinajpur-based importer explained, “Potato price in West Dinajpur of West Bengal and its adjacent districts is now almost the same as in Bangladesh. Excluding transportation costs and crop losses, it is hard to make even 5.0 per cent of profits.”
Despite the vibrant local market, with wholesale prices in regions like Dinajpur, Rangpur, and Nilphamari approximately 20-percent higher than the previous year, the cost of imports remains marginally higher.
“Sourcing dollar at government rate is also crucial for import, which is now hardly possible,” adds the trader, highlighting a critical challenge in the import process.
The Department of Agricultural Extension (DAE) reported that farmers have harvested 9.0 million tonnes or 84 percent of the targeted crop, with a goal to surpass last year’s 10.4 million tonnes production by reaching 11.6 million tonnes this year.
Md Kazi Mahbub Morshed, from the Bangladesh Potato Exporters Association, noted the severe impact of late blight on potato crops in regions like Rangpur and Rajshahi during the cold spells earlier in the year.
He urged for accurate reporting on the extent of crop damage and its effects on production, recalling significant losses back in 2007 when a decreased output led to farmers selling potatoes at considerably higher prices than usual.
The government remains open to permitting imports to address potential shortages, with an MoA official stating, “If local production will not be enough to meet the demand, importers could bring potato anytime if they find profits from that so that intentional hoarders could hardly get any chance to cash in on lesser production.”
However, not all news is bleak, as Munshiganj, another significant potato-producing area, is reported to have healthy yields this year.
Prof Golam Hafiz Kennedy, a value-chain expert, pointed out that apart from fungal diseases, the early harvesting of immature potatoes to prevent potential price drops is expected to affect the market adversely, with farmers harvesting potatoes well below their normal weight.
He advocates for the Bangladesh Bureau of Statistics (BBS) and the DAE to provide comprehensive production data to aid in effective market management.
As the harvest concludes, city markets have witnessed a significant increase in potato prices, with a recent surge of Tk 10-15 per kg, affecting both consumers and the market dynamics surrounding this essential vegetable.
