Farmers of early varieties of potato hit by old stock glut

Farmers who cultivated early varieties of potatoes are once again incurring losses as prices of newly harvested tubers remain unusually low due to an oversupply of older stock in the market.

Fresh potatoes are traditionally sold at a premium for their aroma and taste, particularly when supplies of new harvests are limited.

This year, however, the price gap between new and old potatoes has narrowed significantly, undermining farmers' expectations.

Growers say they had a bumper harvest last winter and had to accept low rates, which pushed many close to bankruptcy. Now, rising production costs have made the prevailing prices of early varieties unsustainable.

According to potato farmers, production costs stand at around Tk 30 per kilogramme (kg) this season, while wholesale prices hover between Tk 28 and Tk 30.

In Dhaka's retail markets, new potatoes are selling for around Tk 35 per kg, with traders purchasing them from farmers at below Tk 30.

Smaller-sized new potatoes are fetching even lower prices, between Tk 25 and Tk 30 per kg, close to the Tk 20-25 per kg price of old potatoes.

"The market is still flooded with old potatoes, which is keeping prices of new ones down," said Arif Hossain, a retail trader in Mirpur. He said he bought fresh potatoes at Tk 28 per kg and is selling them at Tk 35.

According to data from the state-run Trading Corporation of Bangladesh, both new and old potatoes were selling at Tk 60-70 per kg in mid-December last year.

Early potato varieties are planted in early October and harvested within 60-65 days, reaching markets from early December. This season, however, farmers say adverse weather and high input costs have compounded their difficulties.

Nabin Chandra Sarkar, a farmer from Rangpur Sadar upazila, said continuous rainfall during planting made it difficult to protect crops. "Despite all the effort, the price is far below expectations. Even early potatoes are now being sold at a loss."

Dilbar Rahman, a farmer from the Teesta riverine area of Lalmonirhat, said he spent Tk 6.20 lakh cultivating early potatoes on 10 bighas of land but earned only Tk 5.70 lakh from sales. "Last year, I made a profit of around Tk 200,000 on the same land."

Farmers from Kurigram district reported similar losses.

Mostofa Azad Chowdhury Babu, president of the Bangladesh Cold Storage Association, said around 500,000 tonnes of potatoes remain in cold storage, although facilities are usually cleared by December 10. "The faster the stock is cleared, the lower the losses."

Bangladesh produced about 1.15 crore tonnes of potatoes last winter, far exceeding domestic demand. The association estimates annual demand at 80-90 lakh tonnes, including household consumption, industrial use, and seed.

With supply outpacing demand, farmers were forced to sell potatoes below production costs.

Sirajul Islam, additional director of the Department of Agricultural Extension in Rangpur, said farmers are frustrated despite good yields, as market prices are too low to cover costs.

Mohammad Jahangir Alam, professor of agribusiness and marketing at Bangladesh Agricultural University, said declining purchasing power amid rising poverty has also contributed to weaker demand.