Bangladesh Potato Prices Soar to Record Levels Despite Recent Harvest

Potato prices in Bangladesh are surprisingly high, reaching BDT 77 (around USD 0.70) per kilogram, a report by Dhaka-based The Business Standard said. 

This is unexpected since February and March are typically the harvest season for potatoes, when prices are at their lowest. It is expected that potato prices would remain elevated until December when new crop enters the market. 

This skyrocketing price can be blamed on a limited supply of freshly harvested potatoes. Experts predict that potato production could be a concerning 30% lower than last year. 

Bangladesh typically produces a hefty 11.40 million tonnes of potatoes annually. This significant drop is primarily due to the devastating effects of late blight disease that ravaged potato fields. 

Unfortunately, the situation wasn't helped by rising costs of potato seeds and fertilizers, along with unfavorable weather conditions. These combined factors resulted in a smaller harvest and drove up the price of the new crop entering the market. 

During the recent Eid al-Fitr festival on April 11th, news reports indicated that potato prices had even surpassed those of lower-quality rice varieties. At that time, lower-quality rice was selling for around BDT 50 per kilogram (approximately USD 0.45). 

This highlights the severity of the situation, as potatoes are a staple food and are typically much cheaper than rice. The potato crisis in Bangladesh isn't new, with shortages and high prices grabbing headlines since July 2023. 

The government initially suspected manipulation by middlemen and cold storage owners who might be controlling the supply reaching retail markets. However, some organizations countered this by claiming the government's production figures were inaccurate, suggesting a lower actual harvest than reported. 

This conflicting information made it difficult to pinpoint the exact cause of the crisis. Prices for Bangladesh's new potato crop were high from the start, entering the market at BDT 45-50 (around USD 0.41 – 0.45) per kilogram. 

Shockingly, within just two weeks, the price spiked by BDT 15-20 (USD 0.15-0.18) per kilogram, reaching the record high seen last year. In anticipation of rising potato prices, the Bangladeshi government took action by authorizing potato imports from India on February 2nd. 

This marked an expansion of their import policy, as Bangladesh first approved Indian potato imports in October 2023. With the potential for a shortage, the government issued permits for a significant amount, totaling 0.159 million tonnes of potatoes. However, news reports indicate that the import plan fell short, with only 3,159 tonnes of potatoes having arrived by March 24th. 

This shortfall suggests that imports may not have fully addressed the supply issues contributing to high potato prices. Adding to the woes of the potato crisis, a recent import of 370 tonnes from India hit a snag. 

These potatoes, shipped through the Petrapole-Benapole checkpoint, faced delays in unloading due to reportedly missing paperwork. Tragically, this holdup coincided with the region's intense heat, causing the potatoes to spoil. 

This incident highlights the urgency of streamlining import processes to prevent further waste and ensure essential food supplies reach consumers.