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The potato market is volatile throughout the year
Story in: December-2024
Story: The potato market is volatile throughout the year
The price of potatoes has increased again in the market. In the last two weeks, the price of the product has increased by Tk 15 per kg. One kg of potato is being sold at the rate of 70 to 75 taka in the retail market. To control the price of potatoes, the interim government reduced the import duty on the product two months ago. Then, there was import. However, its impact was not seen in the market; instead, the price has increased.
According to media reports, the traders say that the supply of potatoes in the cold storage is nearing its end. Wholesalers are not getting the supply of potatoes as per demand. On the other hand, due to heavy rains in October this year, farmers have delayed planting potato seeds. This is delaying the arrival of early potatoes in the market. Due to these reasons, the price of potatoes is increasing.
On November 11, 2024, after visiting Sheorapara, Agargaon-Taltala, and Mohammadpur town hall markets of the capital and talking to traders, it is known that at the retail level, potatoes are being sold at Tk 70 to Tk 75 per kg. But if bought as palla (5 kg) from the big market, they are available at a little less. 15 days ago, potatoes were Tk 55-60 per kg.
Jahangir Shikder, a potato wholesaler in Karwan Bazar, said, "We are not getting the supply of potatoes as per the demand from the freezer." Because the price is high, the sale of potatoes has also decreased slightly compared to before.
Potatoes do not last long at normal temperatures. For this, the product is kept in the freezer for long-term storage. Traders said that new potatoes usually start arriving at the beginning of November. By mid-December, supplies were back to normal. Then by February-March, the storage of potatoes in the freezer is over. After a few months of sales, this time of the year, the supply of cold storage potatoes is already running low. It increases the price a bit. But compared to the same period last year, the price of potatoes is much higher now.
According to the government agency Trading Corporation of Bangladesh, the potato was selling at Tk 45-50 per kg in the retail market at this time last year, which is now selling at Tk 65-75. Accordingly, the price has increased by about 47 percent in one year. Last year too, the price of potatoes increased to Tk 80, but that was at the end of December. That is, the price of potatoes increased earlier this year.
Traders said some other reasons behind the increase in the price of potatoes. They said, usually at this time of the year, early (new) potatoes start arriving in the market. There is a sort of equilibrium in the price of potatoes. However, due to heavy rains in October this year, farmers have delayed planting potato seeds. This is delaying the arrival of early potatoes in the market. On the other hand, due to good prices this year, farmers are interested in cultivating potatoes on more land in the coming season. However, due to the shortage of seed potatoes, they are also buying potatoes kept for food as seeds. Due to these reasons, there is a crisis in the supply of potatoes and the price has increased.
There is a discrepancy between government and private data on potato production. According to the data of the Department of Agricultural Extension, the annual demand for potatoes in the country is 90 lakh tonnes. This year potato production has been around 1 crore 3 lakh tons. However, the demands of the cold storage owners are different. They say that 70 to 75 lakh tons of potatoes have been produced this year. Accordingly, there is a shortfall of 10-15 lakh tonnes of potatoes compared to the demand.
Meanwhile, the government took the initiative to reduce the import duty of potatoes in the month of September to control the price in the local market. On September 5, the National Board of Revenue (NBR) in a notification (SRO) reduced the import duty on potatoes from 25 percent to 15 percent. Besides, the 3 percent regulatory duty on potato imports was withdrawn. Potatoes are being imported at low duty. For example, from October 24 to November 11, more than 10,000 tons of potatoes arrived in the country from India through the Hili landport. It was hoped that this would reduce the price of potatoes in the market. But in reality, the price has increased.
Mostafa Azad Chowdhury, president of Bangladesh Cold Storage Association, an organization of cold storage owners, said that potatoes were sold wholesale at Tk 42-45 per kg from the cold storage last June. That price has now gone up to 62 rupees. Such prices have never been seen before at the freezer level. Due to the increased demand for potatoes, the stockists are increasing the prices at will.
Mostafa Azad Chowdhury said that the extra profit that is being kept in the potato kg from the cold store is being taken by the hoarders. -Editor
Home Editorial Calendar The potato market is volatile throughout the year
Story: The potato market is volatile throughout the year
The price of potatoes has increased again in the market. In the last two weeks, the price of the product has increased by Tk 15 per kg. One kg of potato is being sold at the rate of 70 to 75 taka in the retail market. To control the price of potatoes, the interim government reduced the import duty on the product two months ago. Then, there was import. However, its impact was not seen in the market; instead, the price has increased.
According to media reports, the traders say that the supply of potatoes in the cold storage is nearing its end. Wholesalers are not getting the supply of potatoes as per demand. On the other hand, due to heavy rains in October this year, farmers have delayed planting potato seeds. This is delaying the arrival of early potatoes in the market. Due to these reasons, the price of potatoes is increasing.
On November 11, 2024, after visiting Sheorapara, Agargaon-Taltala, and Mohammadpur town hall markets of the capital and talking to traders, it is known that at the retail level, potatoes are being sold at Tk 70 to Tk 75 per kg. But if bought as palla (5 kg) from the big market, they are available at a little less. 15 days ago, potatoes were Tk 55-60 per kg.
Jahangir Shikder, a potato wholesaler in Karwan Bazar, said, "We are not getting the supply of potatoes as per the demand from the freezer." Because the price is high, the sale of potatoes has also decreased slightly compared to before.
Potatoes do not last long at normal temperatures. For this, the product is kept in the freezer for long-term storage. Traders said that new potatoes usually start arriving at the beginning of November. By mid-December, supplies were back to normal. Then by February-March, the storage of potatoes in the freezer is over. After a few months of sales, this time of the year, the supply of cold storage potatoes is already running low. It increases the price a bit. But compared to the same period last year, the price of potatoes is much higher now.
According to the government agency Trading Corporation of Bangladesh, the potato was selling at Tk 45-50 per kg in the retail market at this time last year, which is now selling at Tk 65-75. Accordingly, the price has increased by about 47 percent in one year. Last year too, the price of potatoes increased to Tk 80, but that was at the end of December. That is, the price of potatoes increased earlier this year.
Traders said some other reasons behind the increase in the price of potatoes. They said, usually at this time of the year, early (new) potatoes start arriving in the market. There is a sort of equilibrium in the price of potatoes. However, due to heavy rains in October this year, farmers have delayed planting potato seeds. This is delaying the arrival of early potatoes in the market. On the other hand, due to good prices this year, farmers are interested in cultivating potatoes on more land in the coming season. However, due to the shortage of seed potatoes, they are also buying potatoes kept for food as seeds. Due to these reasons, there is a crisis in the supply of potatoes and the price has increased.
There is a discrepancy between government and private data on potato production. According to the data of the Department of Agricultural Extension, the annual demand for potatoes in the country is 90 lakh tonnes. This year potato production has been around 1 crore 3 lakh tons. However, the demands of the cold storage owners are different. They say that 70 to 75 lakh tons of potatoes have been produced this year. Accordingly, there is a shortfall of 10-15 lakh tonnes of potatoes compared to the demand.
Meanwhile, the government took the initiative to reduce the import duty of potatoes in the month of September to control the price in the local market. On September 5, the National Board of Revenue (NBR) in a notification (SRO) reduced the import duty on potatoes from 25 percent to 15 percent. Besides, the 3 percent regulatory duty on potato imports was withdrawn. Potatoes are being imported at low duty. For example, from October 24 to November 11, more than 10,000 tons of potatoes arrived in the country from India through the Hili landport. It was hoped that this would reduce the price of potatoes in the market. But in reality, the price has increased.
Mostafa Azad Chowdhury, president of Bangladesh Cold Storage Association, an organization of cold storage owners, said that potatoes were sold wholesale at Tk 42-45 per kg from the cold storage last June. That price has now gone up to 62 rupees. Such prices have never been seen before at the freezer level. Due to the increased demand for potatoes, the stockists are increasing the prices at will.
Mostafa Azad Chowdhury said that the extra profit that is being kept in the potato kg from the cold store is being taken by the hoarders. -Editor
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