Bangladesh: BCSA urges halt to potato imports as prices fall 30% below production cost

This request was communicated through a letter to the commerce ministry on January 22, as conveyed by BCSA President Mostofa Azad Chowdhury Babu. The letter highlighted a substantial expansion in potato cultivation area by 50 percent year-on-year, forecasting a production surge to 12 million tons by 2025.

Current market conditions have seen potato retail prices plummet to $0.15 to $0.16 per kilogram, below the production cost range of $0.21 to $0.23, posing a severe financial strain on farmers. The BCSA warns that further imports could exacerbate this price drop, discouraging potato cultivation among farmers. The concern follows the National Board of Revenue’s recent decision to expand potato importation from Nepal and Bhutan through an increased number of customs stations, from four to thirteen, effective until March.

This policy adjustment was initially sought by traders in response to a spike in potato prices to $0.93 per kilogram last December, preceding the seasonal stock depletion before the February to April harvest period. However, with domestic prices now declining, the continuation of this import policy is feared to precipitate substantial losses for farmers against the backdrop of a bumper harvest. Bangladesh’s potato demand is estimated at 8.5 to 9 million tons annually, with production typically exceeding 10.6 million tons. The previous fiscal year saw potato imports reaching 150,000 tons from India.