Prior to cultivating any crop, farmers naturally wonder whether they can earn a profit from it or not. In other words, the prospect of profit is what motivates them to cultivate a certain crop. This concern isn’t limited to the farmer; it is shared by their family members as well.
When I was in eighth grade, I understood this well because we were primarily a farming family. After planting the crops, my siblings and I would think about the rice my father would harvest. We hoped that when the harvest came, and if the prices were good, many of our dreams would be fulfilled, such as getting new clothes for school or being able to ask for a new outfit for Eid. I would also hope to take private lessons with two teachers or plead for a new football. My mother and sisters had their own dreams about what we could do if we made a profit from selling the crops.
However, when it is time to harvest and the crops sell for less than their production cost, farming families experience losses so severe that they cannot even pay for irrigation, land leases, or loans, let alone fulfil the modest hopes and aspirations they had tied to a good harvest.
Recently, the BNP government has announced a waiver of up to Tk 10,000 in agricultural loans, including interest, for about 12 lakh farmers, which is undoubtedly commendable. However, this waiver will only benefit those who have taken agricultural loans from the government or private banks. Millions of other farmers who borrow from private institutions or local businessmen each year to cultivate crops are being excluded from this benefit.
While a loan waiver is a welcome gesture, how much does it truly help a farmer who is forced into a cycle of debt because they cannot secure a fair price for their crops? The current suffering of potato farmers is undeniable in this regard. According to the Bangladesh Cold Storage Association and the Department of Agricultural Extension (DAE), our annual demand for potatoes is roughly 80-90 lakh tonnes. Last year, production soared to 1.15 crore tonnes, leading to massive losses for farmers by the end of the season.
The northern region produces nearly 65 to 70 percent of the country’s potatoes. Farmers say they had initially hoped that last year’s losses would lead to reduced cultivation and better prices this year. However, DAE data show that cultivation exceeded the target by 2,477 hectares this year as well. After two consecutive years of losses, many farmers have lost their financial capacity to farm altogether.
According to the DAE, in Bogura, the cost of producing one kilogramme of potatoes has risen from Tk 14.50 last year to Tk 16.64 this year. Last year, farmers were forced to sell potatoes for around Tk 8-10 per kg at the cold storage gate. Over the past month, the situation has worsened, with farm-gate prices hovering around Tk 8-9 per kg, according to agriculture marketing officers in these regions. Farmers are currently earning less than half of their production costs.
Image
Photo: Mostafa Shabuj
On the other hand, potato growers find themselves in a systematic trap again this year: the potatoes are ready for harvest but low prices discourage farmers from harvesting them. According to data from the field wing of the DAE, nearly 20 lakh tonnes of potatoes were harvested over just 10 days in February. Without home storage or access to cold storage, and under immense pressure to repay lenders for fertiliser, pesticides and irrigation, farmers were forced to sell at any price offered. Traders capitalised on this vulnerability, buying potatoes at low prices for future profit.
However, according to the Department of Agricultural Marketing, last year a total of 31.61 lakh tonnes of potatoes were stored in 384 cold storages and 539 non-refrigerated warehouses, utilising 96 percent of their total capacity. This indicates that Bangladesh currently possesses the infrastructure to store less than 25 percent of its total potato production. With this year’s production target set at 1.13 crore tonnes — around 30 lakh tonnes above demand — we are looking at a massive surplus of potatoes. Meanwhile, our export track record is equally discouraging. In the last five years, potato exports have failed to cross 62,000 tonnes.
The current state of our potato farmers is thus quite demoralising. If left unaddressed, this frustration could spill over into other agricultural sectors, reducing our overall food production capacity. To protect potato growers, experts are suggesting that the government should purchase potatoes directly from farmers, similar to the procurement process for rice and paddy. These stocks can be sold through TCB trucks throughout the year. The government can also release these potatoes into the wholesale market when prices rise. To further assist farmers, the government should subsidise cold storage fees and help them hold on to their produce.
Beyond such reactive measures, the ultimate solution can be narrowed down to two ways through which the government can help farmers avoid debt: reducing production costs and ensuring that farmers receive fair prices for their products. We must also bridge the communication and coordination gap between the DAE and farmers so as to ensure accurate data on the amount of harvest to be targeted for each crop. If we cannot guide our farmers effectively, they may eventually abandon the fields to join the urban working class—a shift that poses another grave threat to our economy and food security.
Mostafa Shabuj is a journalist. He can be reached at [email protected].
Views expressed in this article are the author's own.
Follow The Daily Star Opinion on Facebook for the latest opinions, commentaries, and analyses by experts and professionals. To contribute your article or letter to The Daily Star Opinion, see our guidelines for submission.
