Govt to allow potato import as prices hit historic high
In a first for Bangladesh, the commerce ministry yesterday decided to allow potato imports in an effort to increase supply of the tuber and thereby curb prices in the domestic market.
In a statement, the commerce ministry said it took the decision as potato prices have soared to a historic high of Tk 60 per kilogramme (kg) in Dhaka even though there was adequate local production.
"The commerce ministry has taken this decision in view of the current market situation," said the statement by Md Haidar Ali, public relations officer of the commerce ministry.
The decision comes nearly one-and-a-half months after the government fixed the wholesale and retail prices of three essential commodities, including potato.
The commerce ministry, in consultation with the agriculture ministry, had fixed the retail price of potato at Tk 35 per kg and directed traders to comply.
However, the directive fell flat as potato, one of the most popular vegetables, is selling at much higher prices even though government agencies conducted drives in cold storages to prevent hoarding.
Traders blame lower production for the spiralling prices of the tuber.
But government agencies do not accept this claim as the Bangladesh Bureau of Statistics (BBS) estimates that 1.04 crore tonnes of potato were produced in the last harvesting season of fiscal 2022-23.
The amount produced was nearly 3 percent higher year-on-year, BBS data shows.
The Bangladesh Cold Storage Association (BCSA), members of which store potatoes for sale in the lean season, said the production estimate was incorrect.
"Prices shouldn't rise to such a high level if there was plenty of production. We could not increase the price last year as there was ample production," said BCSA President Mostafa Azad Chowdhury Babu.
He said a maximum 30 lakh tonnes of potato, including seed potato, were kept in cold storages this year.
"So, where has the rest gone? Did people consumed the rest 80 lakh tonnes in January-May?" he asked while welcoming the decision to allow imports of the root vegetable.
"Imports will increase supply and thereby benefit people by reigning in the exorbitant prices for the crop," he added.
Yesterday, the retail price of potato was Tk 55- 60 at markets in Dhaka, which was 32 percent higher from a month ago. Besides, it was double the rate on the same day of the previous year, according to market price data of the Trading Corporation of Bangladesh.
The root vegetable, depending on variety, was selling for as much as Tk 70 per kg outside Dhaka.
Mohammad Masum, chairman of Supreme Seed Company Ltd, a leading seed company, said the decision to allow potato imports is already late.
"Potato prices will begin declining after early varieties come to the market within a month," he added.
In its statement, the commerce ministry said vested quarters are trying to make the potato market unstable.
Under this circumstance, it decided to allow imports and is calling upon interested businesses to apply for permission in this regard.
Md Rezaul Karim, director of the Plant Quarantine Wing of the Department of Agricultural Extension, said seed potatoes are mainly imported for cultivation.
"So, to my knowledge, no potato was ever imported for consumption in the past, he added.