Many farmers across Bangladesh are facing significant financial losses this year as potato prices have dropped below production costs during the peak harvest season.

Despite a bumper yield, many farmers are struggling to break even and are now worried about recovering their losses.

Meanwhile, farmers are urging the government to provide incentives for potato exports, reduce transportation costs, and promote the cultivation of export-quality varieties.

Encouraged by high prices during the potato planting season last November, farmers significantly increased their cultivation of the crop this year.

According to the Department of Agricultural Extension (DAE), potato cultivation surged to a record 5.24 lakh hectares this fiscal year, marking a 15 percent increase compared to the previous year. Farmers aimed to capitalise on last year's peak prices, which had soared as high as Tk 80 per kg, hoping for similar gains.

In Dhaka yesterday, potatoes were selling at Tk 20-25 per kg in retail markets. The price has been roughly the same for around a month, according to the data of the state-run Trading Corporation of Bangladesh

The situation is worse in the potato-producing hubs like Bogura, Pabna, Joypurhat, Thakurgaon, Rangpur, and Dinajpur, with farmers reporting prices as low as Tk 11-15 per kg -- far below the production costs.

While the Department of Agricultural Marketing estimates the country's average production cost at Tk 14 per kg this season, for farmers in the northern region it's around Tk 20 per kg.

This has left many farmers fearing they will be unable to recoup their initial investment. They are now pinning their hopes on rising prices in the coming months or government intervention to support them.

This season, total production is expected to reach 1.20 crore tonnes, according to the Bangladesh Cold Storage Association, a major player in the local supply chain.

The figure is close to the 1.09 crore tonnes produced last season, according to DAE data, and surpasses the country's annual demand of around 90 lakh tonnes.

Although the government estimates that around 30 percent of the total produce is lost due to shortcomings in storage facilities, this oversupply means there may be little relief for small farmers.

Haradhan Roy, a farmer from Parbatipur upazila of Dinajpur, said he is now selling his produce at Tk 15 per kg.

Last season, potatoes were sold at Tk 20-23 per kg at the field level in March, while in December, prices soared to Tk 70-90 per kg, he added.

Refaz Uddin, a farmer from Badarganj upazila in Rangpur, said, "Farmers usually store their potatoes in cold storage to secure better prices later, but many have failed to avail the facility amid rising rents and space shortages."

Meanwhile, in Bogura, potato prices had increased slightly after cold storage facilities opened in the northern region at the end of February this year.

However, prices fell again by up to Tk 200 per maund as most storage facilities reached full capacity.

From mid-February to early March, potatoes were sold at Tk 500-650 per maund in the northern districts. However, with most cold storage facilities now closed, potato prices have fallen to Tk 450 per maund, farmers said.

They are also worried about how to store such a large quantity of potatoes at home.

Sakiul Islam, a farmer from Gobindaganj upazila in Gaibandha, said, "I have lost an average of Tk 15,000 per bigha. I was only able to store 135 sacks of potatoes in cold storage.

"As the cold storage facilities have closed, I still have about 100 maunds of potatoes at home. If I have to sell these potatoes at Tk 450 per maund now, I will incur heavy losses."

He leased three acres of land for potato cultivation this season for Tk 3 lakh for one year. Out of the Tk 3 lakh, Tk 90,000 was a bank loan.

"Due to the losses, I can't repay the bank loan. Now, I'll have to borrow again to pay off the debt."

Naim Islam, a farmer from Joypurhat district, said about 30 percent of the farmers in his village still have potatoes at home. On the one hand, there is no space in cold storage, and on the other hand, market prices remain low.

Moreover, potatoes are starting to rot due to rising temperatures, he added.

Farmers in Munshiganj say the few buyers who approach offer as little as Tk 6-8 per kg, far below the farmers' production costs, which range between Tk 20-25 per kg.

Salim Mridha, a farmer from Munshiganj Sadar, expressed his frustration, saying, "We're in deep trouble. I'm trying to store them in cold storage, but I haven't been able to secure space yet."

Biplob Kumar Mohanta, deputy director of the Munshiganj Agricultural Extension Department, said they've advised farmers to hold off on selling and instead store their produce at home.

He believes that prices may increase in the coming month or two.

Samir Hossain Siam, agricultural marketing officer of Munshiganj, said that they have instructed cold storage owners to ensure that small farmers are able to store their potatoes without issues.

"The storage cost has been set at Tk 6.75 per kg. If any cold storage owners charge more, we will take legal action."

Mostafa Azad Chowdhury Babu, president of the Bangladesh Cold Storage Association, said that so far, about 70 percent of cold storage facilities in the northern region have been filled, while 20 percent in Munshiganj are occupied.

However, many local farmers and political leaders from different parts of the country do not believe this information, he said.

Contacted, Emdad Ullah Mian, secretary of the Ministry of Agriculture, said efforts have been made to provide farmers with alternative potato storage options alongside cold storage facilities.

"Initially, cold storage owners raised rental rates, but after negotiations, a fair and reasonable pricing structure was reached.

The official also said several export barriers have been removed to safeguard farmers from losses.

"As a result, potato exports this season have reached 26,193 tonnes—double the volume of the previous fiscal year—amounting to Tk 67.95 crore in value."

Jahangir Alam Khan, an agricultural economist, recommended the government buy a minimum of 10 lakh tonnes of potatoes from farmers.

Additionally, he suggested that 20 to 25 percent of the country's cold storage capacity should be reserved exclusively for farmers.