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The government decision to open all land ports for potato imports has significantly impacted the domestic market, causing the tuber's prices to plummet to a three-year low at farmers' end.
Farmers across the country are struggling to recover their investments as the record price drop coincides with the peak harvesting season.
Many are demanding the government impose restrictions on import for at least three months to provide relief.
In Dhaka's retail markets, potato prices have declined to Tk 20-30 per kg, compared to Tk 40-50 just a week ago and Tk 60-80 a month ago.
According to the Department of Agricultural Marketing (DAM), the current potato prices are over 30 per cent lower than those during last year's harvesting season.
A DAM official says farmers are selling potatoes at Tk 9.0-12 per kg, down from Tk 18-24 in the past two years.
He says production costs have soared, with at least Tk 0.2 million needed per hectare this year due to rising seed prices.
Farmers typically require 1.5 tonnes of seed per hectare, which can produce 18-20 tonnes of potato.
They are now earning a maximum of Tk 0.22 million from per hectare yield, which barely covers their expenses.
The Trading Corporation of Bangladesh (TCB) data shows potato prices have dropped by 55 per cent in a month, reaching the lowest level in three years.
During last year's harvesting season, consumers in Dhaka bought potatoes at Tk 35-40 per kg, which was Tk 26-35 a kg in 2023, according to TCB.
For potato imports, the government on January 19 opened nine more ports - three in Sylhet; two in Mymensingh; and one each in Kurigram, Jamalpur, Sherpur, and Chapainawabganj - in addition to the traditional Benapole, Hili, and others.
Adil Hossain Chowdhury, a farmer and trader in Dinajpur's Khansama upazila, says he has cultivated potato on six bighas of land.
"I incurred losses of Tk 30,000 after harvesting three bighas. I plan to store the potatoes from the remaining three bighas with hopes that prices will rise, but I doubt I will recover my investment."
He further says small-scale farmers and sharecroppers are in even worse conditions.
Saiful Islam, an official at the Department of Agricultural Extension's (DAE) horticulture wing, says favourable weather and last year's record prices prompted farmers to increase potato cultivation this year.
"We are targeting an output of 11 million tonnes," he says.
Value chain expert Professor Golam Hafeez Kennedy says the government must act promptly to protect farmers.
"If prices fall below production costs, import restrictions should be imposed. Market trends indicate no potato shortage in the next three months. So restrictions are necessary to stabilise prices for farmers," he tells The Financial Express.
He warns traders and cold storage owners will dominate the market once primary trading by farmers concludes, driving up prices.
Import restrictions can be relaxed if prices go up illogically, says the professor. He also urges the DAE to take immediate action and restrict imports for a few months.
DAE Director General Md Saiful Alam could not be reached for comments despite several attempts.