Potato harvest high, export low
Despite double the demand for potato is produced in Bangladesh, the volume of export of the vegetable is not up to par.
It is said that decreased potato exports are due to low-quality potato, lack of stimulus package and inadequate preservation.
These are the reasons that have led to the export of only 1.15 percent of the total potato yield in the country.
Sources said Russia earlier used to import 75 lakh tonnes of potato per year from here, but things have fallen apart.
According to sources, potato export is on the slide as Russia is yet to lift a May 2015 ban on food safety grounds after detecting some contaminated consignments.
Russia aside, Bangladeshi businessmen export to Nepal, Malaysia, Singapore, Indonesia, Sri Lanka, Thailand, Hong Kong, Vietnam, the Maldives, Oman, Cambodia and Brunei in small volumes.
According to the government’s agricultural marketing department, the domestic potato harvest hit all-time high in the last fiscal year (2017) with 1.13 crore tonnes output from 5.28 hectares of land.
Available sources said potato output was 9.47 million tonnes on 4.75 million hectares in 2016 fiscal against 9.25 million tonnes on 4.62 million hectares in 2015.
While Bangladesh globally maintains its 7th position in potato production in the last four consecutive years, sector insiders said, poor storage capacity is hurting farmers and traders.
To show the production-sales cost ratio, Bangladesh Bureau of Statistics survey reveals that average production cost per kilogram was Tk 7.40 in 2016-17 fiscal and Tk 8.5 to Tk 9 fixed for sales at farmers’ end. But potato was selling at Tk .65 only at the end of the year.
Cold storage operators in the country said some 20 lakh tonnes of potato remained unsold by the end of 2018 for a sluggish demand for the vegetable at home and abroad.
The price gap between cold storage gates and retail level remains high as retailers sell potato by adding their operational cost, wastage and profit.
However, Bangladesh Cold Storage Association sources said storage capacity has increased this year compared to last year’s and farmers and traders are expecting higher returns during lean season.
Bangladesh Potato Exporters Association president Sheikh Abdul Kader said Bangladesh’s key potato competitor India is giving a 20 percent cash incentive for exporters.
The incentive is 40 percent in Pakistan. Bangladesh reduced the incentive to 10 percent for 2016-17 fiscal, leaving a severe impact on potato exports, he added.
Kader said potato exporters got a 20 percent cash incentive until 2015-16 fiscal since 2011 as part of the government’s support for the ailing sector.
He, however, sought proper steps to ensure exports to countries like Russia, Indonesia, Vietnam, Thailand and the Philippines anew.
Sources at the state agricultural agency said the country has 391 cold storages with 2.7 million tonne capacity in 2015, which was 2.3 million tonnes in 2011.
Agronomists said poor storage facility has long been depriving growers of making profits from farming.
Abdul Hannan, director, field service wing of agriculture extension department, said farmers’ expectations of favourable weather, resultant output and returns from sales have helped increase acreage and production of the key tuber crop.
Output has increased by 1.26 million tonnes in the last five years, whereas storage facility increased by only 0.4 million tonnes during the period, Hannan said.
He suggested that exporters only ship good-quality potato abroad. “The demand for potato will rise if exporters do so.”
Prof Dr Tuhin Shuvra Roy of agronomy department at Sher-e-Bangla Agricultural University pleaded that the government explore new markets with high yields of quality potato.
It is said that decreased potato exports are due to low-quality potato, lack of stimulus package and inadequate preservation.
These are the reasons that have led to the export of only 1.15 percent of the total potato yield in the country.
Sources said Russia earlier used to import 75 lakh tonnes of potato per year from here, but things have fallen apart.
According to sources, potato export is on the slide as Russia is yet to lift a May 2015 ban on food safety grounds after detecting some contaminated consignments.
Russia aside, Bangladeshi businessmen export to Nepal, Malaysia, Singapore, Indonesia, Sri Lanka, Thailand, Hong Kong, Vietnam, the Maldives, Oman, Cambodia and Brunei in small volumes.
According to the government’s agricultural marketing department, the domestic potato harvest hit all-time high in the last fiscal year (2017) with 1.13 crore tonnes output from 5.28 hectares of land.
Available sources said potato output was 9.47 million tonnes on 4.75 million hectares in 2016 fiscal against 9.25 million tonnes on 4.62 million hectares in 2015.
While Bangladesh globally maintains its 7th position in potato production in the last four consecutive years, sector insiders said, poor storage capacity is hurting farmers and traders.
To show the production-sales cost ratio, Bangladesh Bureau of Statistics survey reveals that average production cost per kilogram was Tk 7.40 in 2016-17 fiscal and Tk 8.5 to Tk 9 fixed for sales at farmers’ end. But potato was selling at Tk .65 only at the end of the year.
Cold storage operators in the country said some 20 lakh tonnes of potato remained unsold by the end of 2018 for a sluggish demand for the vegetable at home and abroad.
The price gap between cold storage gates and retail level remains high as retailers sell potato by adding their operational cost, wastage and profit.
However, Bangladesh Cold Storage Association sources said storage capacity has increased this year compared to last year’s and farmers and traders are expecting higher returns during lean season.
Bangladesh Potato Exporters Association president Sheikh Abdul Kader said Bangladesh’s key potato competitor India is giving a 20 percent cash incentive for exporters.
The incentive is 40 percent in Pakistan. Bangladesh reduced the incentive to 10 percent for 2016-17 fiscal, leaving a severe impact on potato exports, he added.
Kader said potato exporters got a 20 percent cash incentive until 2015-16 fiscal since 2011 as part of the government’s support for the ailing sector.
He, however, sought proper steps to ensure exports to countries like Russia, Indonesia, Vietnam, Thailand and the Philippines anew.
Sources at the state agricultural agency said the country has 391 cold storages with 2.7 million tonne capacity in 2015, which was 2.3 million tonnes in 2011.
Agronomists said poor storage facility has long been depriving growers of making profits from farming.
Abdul Hannan, director, field service wing of agriculture extension department, said farmers’ expectations of favourable weather, resultant output and returns from sales have helped increase acreage and production of the key tuber crop.
Output has increased by 1.26 million tonnes in the last five years, whereas storage facility increased by only 0.4 million tonnes during the period, Hannan said.
He suggested that exporters only ship good-quality potato abroad. “The demand for potato will rise if exporters do so.”
Prof Dr Tuhin Shuvra Roy of agronomy department at Sher-e-Bangla Agricultural University pleaded that the government explore new markets with high yields of quality potato.
(The article was first published on Bangladesh Post)
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