Traders lament as potato price plummets in N-dists

Traders with potato on the corridor of a cold storage in Nilphamari awaiting buyers. The market is very dull as prices have plummeted. PHOTO: STAR

The fall in price will have a fallout effect on farmers in the coming winter seasons.

Unless potato-based agro-industries are set up and export of potato is promoted, farmers may be discouraged to grow the vegetable in coming seasons, some farmers, cold storage owners and traders said.

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Potato cultivation increased in northern districts over the years. Farmers took it as a cash crop.

According to Agricultural Extension Department (DAE) here, production of potato in the country exceeded the target last year. One fourth of the about 40 lakh tonnes was produced in northern districts.

DAE Deputy Director in Nilphamari Sakhawat Hossain told this correspondent that about 2.26 lakh metric tones of potato were produced in Nilphamari district last year against a target of 1.88 tonnes. The district turned into a major potato growing area in the region.

Some cold storage owners and potato traders said that out of 10 lakh tonnes produced in the region, about 5 lakh tonnes are still preserved in about 50 cold storages.

Of them, one lakh tonnes are in four cold storage in Nilphamari.

Trader Habibullah Mia said he purchased potato during the harvesting season at Tk 350 per 84 kg bag. With transport cost and cold storage charge, the cost is now Tk 550 to 600 per bag but it is sold at Tk 300 to 350 only. The loss per kilogram is Tk 3.00 to 3.25. The total loss to traders in northern districts would be around Tk 150 crore, he said. The loss will rise if the price falls further, Habibullah Mia said. There was a bumper production of potato last year, he added.

Rashidul Islam, Chief Store Keeper at Shaon Cold Storage having a capacity of 1.5 lakh bags said that though it it now time for early sowing, traders and farmers are taking delivery of only 300 to 350 bags every day instead of last year's 1000 bags on an average.

He also said that only one fifth of the total stock has been delivered so far. Traders and farmers are now observing the situation, he added.

Traders said they had to incur losses last year. If they incur losses this year also, many of them will be out of business and become bank loan defaulters, they said.

It is learnt that per kg potato is now sold at Tk 13 to 14 in Indian markets. There is good demand of Bangladeshi potato in India, Sri Lanka, Indonesia, Malaysia, Singapore and some European countries. Export of potato to those countries may salvage the traders, cold storage owners and farmers as well, traders suggested.

Syed Ali, owner of Mukta Cold Storage in Nilphamari said it would not be possible to realise even the cost of running a cold storage if the low price continues. "

I am worried about repayment of the huge bank loan as there is sign of repetition of last year's situation", he said.

Monsurul Islam Danu, owner of Shaon Cold Storage said the government should come forward to help investors to set up potato-based industries like the one in Joypurhat where exportable starch is going to be produced from potato next year. The plant has been set up with technical assistance from a European country. The plant will utilise five lakh tonnes of potato annually to produce starch.