Bangladesh: Is farmers’ switch to profitable maize hurting potato production?

Added to that is the increasing demand for maize in animal feed production, offering attractive prices.

According to the Bangladesh Cold Storage Association, the price of maize has increased due to the Russia-Ukraine war, encouraging farmers to grow more of the crop, which has led to a decrease in potato production.

Stakeholders indicate this may have led to a supply shortage of potatoes in the market, which the government has been unable to address despite taking various measures, such as fixing market prices.

The potato market has recently been destabilised, with prices soaring to Tk50 per kg despite the government’s efforts to cap them at Tk35-Tk36.

The Directorate of National Consumer Rights Protection recently recommended import of potato to overcome the price instability and supply shortage in the potato market.

The Bangladesh Cold Storage Association said that at least 20% fewer potatoes have been stored in cold storage this year than usual.

The actual amount of potato production this year is around 85 lakh tonnes, despite the government’s claim of over 1 crore tonnes, noted the association. The annual demand for potatoes in the country is around 90 lakh tonnes.

A senior DAE official, on condition of anonymity, expressed a similar view. "The post-harvest loss of potatoes is at least 20%, which is not deducted from the total production count. This means that the actual potato production is 20% lower than the reported figure, making planning difficult," he said.

According to the Bangladesh Wheat and Maize Research Institute, maize production in Bangladesh increased from 49.15 lakh tonnes in FY22 to 57.52 lakh tonnes in FY23. This was due to an increase in the area under maize cultivation, from 4.62 lakh hectares in FY22 to 5.19 lakh hectares in FY23.

The Department of Agriculture Extension (DAE) data shows that the area under maize cultivation in FY23 was even higher than the BWMRI estimate, at 6 lakh hectares. The DAE also estimates that maize production in FY23 was 64.13 lakh tonnes.

Data from the Bangladesh Bureau of Statistics (BBS) reveal that the area under potato cultivation decreased in the last financial year. Potato cultivation in Bangladesh decreased by 1.83% to 4.55 lakh hectares of land in FY23, according to the BBS data. This resulted in a production of 1.04 crore tonnes, down from 1.1 crore tonnes in the previous fiscal year.

Mustafa Azad Chowdhury, president of the Bangladesh Cold Storage Association, told The Business Standard that the potato harvest is completed in March and the potatoes that farmers have during this time are enough to meet the country’s needs until June.

"After this, potatoes stored in cold storage start to come into the market. However, due to low production this year, cold storages started releasing potatoes from the second week of May," he said.

Despite the government’s announcement that potato production exceeds demand, potato prices have suddenly increased from Tk35-Tk40 to Tk50 per kg. The government has been unable to reduce the price of potatoes by fixing it at Tk35-Tk36 per kg.

As a result, the Directorate of Consumer Rights Protection has recommended the import of potatoes to the Ministry of Commerce.

Badal Chandra Biswas, director general of the Department of Agricultural Extension, said that farmers are turning towards maize cultivation due to low potato prices and high demand for maize as livestock feed.

He added that maize cultivation is increasing all over the country, including in the chars and southern regions.

He said that the DAE is not worried about potato production even if the land under cultivation is reduced because better varieties of potatoes are now producing higher yields per hectare. He added that the DAE aims to keep potato production above 1 crore tonnes.

Rapid growth in maize cultivation

According to the Bangladesh Wheat and Maize Research Institute, maize cultivation has increased by 8.37 lakh tonnes in a span of one year.

According to the institute, 57,000 hectares of new land have been added under maize cultivation in FY23. Due to this, the production has increased by more than 8 lakh tonnes to 57.5 lakh tonnes.

Farmers say that the cost of cultivating maize is lower than other crops, and it requires less labour. The profit margin on maize sales is also good, making it a profitable crop.

Mozammel Haque, a farmer in Raninagar upazila, Naogaon, has been cultivating maize on four bighas of land for several years, having previously cultivated potatoes and mustard on the same land.

He said that the yield of maize this season has been 134 maunds, with a production cost of about Tk60,000. Even if he sells maize at Tk950-Tk1,000 per maund, he will make a profit of more than Tk70,000.

Anisur Rahman, a farmer from Jamalpur, said that he used to grow various crops, including pulses and potatoes, but has now switched to maize cultivation due to its high demand and good profitability. He has been growing maize on 5.5 bighas of land for three years.

Mahmudul Hasan Sumon, a farmer from Dhunat upazila in Bogura, has been cultivating maize for about eight years. He says that the cost of cultivating and harvesting one bigha of maize is Tk15,000. Raw maize sells for up to Tk900 per maund, and dry maize sells for more than Tk1,100 per maund this season.

Sumon says that there is no problem with the price of maize and that mills provide rates for it, so farmers from all areas can sell with confidence.

Abul Kalam Azad, director of the DAE in Naogaon, told TBS that maize cultivation is increasing because it is more profitable than potato cultivation. Even on a small plot of land, farmers can earn a good income from maize cultivation.

DAE Director Badal Chandra Biswas said that the country’s livestock sector is very large and has a high demand for maize. Even with domestic maize production, Bangladesh needs to import maize to meet demand. Due to this large market, farmers are interested in cultivating maize, and the DAE is providing various incentives to increase maize cultivation.