No force will be able to manipulate the market and push potato prices beyond Tk 40 per kilogramme during the upcoming lean season, said Mostafa Azad Chowdhury Babu, president of the Bangladesh Cold Storage Association (BCSA).
“I am making this claim in advance. If I am proven wrong, you can hold me accountable. If potato prices exceed Tk 40 per kg, we will offer a reward from the BCSA,” he said.
He made the remarks at a press conference today at the association’s office in Purana Paltan, Dhaka, where discussions focused on potato storage and cold storage rental fees.
The planting season for potatoes runs from October to November, while harvesting takes place between February and April in Bangladesh.
In November last year, potatoes were selling for as much as Tk 80 per kg in Dhaka, according to data from the state-run Trading Corporation of Bangladesh (TCB).
Babu claimed that potato cultivation has increased by 40 percent this season compared to the previous one.
Meanwhile, data from the Department of Agricultural Extension showed that about 4.65 lakh hectares of land were brought under potato cultivation this season, up from 4.50 lakh hectares last year.
He also said the country is expected to produce 1.2 crore tonnes of potatoes this year, while domestic demand stands at 90 lakh tonnes.
The BCSA president further mentioned that the storage fee for potatoes in cold storage has been raised from Tk 7 to Tk 8 per kg to adjust for rising storage costs.
Recently, certain vested groups in some parts of the country have been protesting, claiming that cold storage rental fees have doubled, he said.
However, he added that these groups are ignoring the rising operational costs of running cold storage facilities. Instead, they are spreading misleading narratives to confuse stakeholders, he said.
At present, the interest rate on bank loans for cold storage operations has risen to nearly 15 percent. If the instalments are not paid on time, an additional 2 percent penalty will be applied, bringing the total interest rate to 17 percent, he said.
He also pointed out that costs have increased significantly for electricity, loading and unloading, sack replacement, staff salaries and benefits as per the minimum wage board, bonuses, honorariums, cold storage insurance, ammonia gas, lubricants, machinery parts, repairs, and other operational expenses.
Babu also mentioned that 70 to 80 percent of the potatoes stored in cold storage this year will belong to farmers, dismissing concerns that traders will buy up potatoes and dominate storage facilities.
However, he asked, if traders refrain from purchasing potatoes, to whom will farmers sell their produce? There must be a balance in the market.
Farmers are expected to begin storing their potatoes in cold storage by the end of February.
