A snapshot of potatoes stored in the freezer at Kadam Rasul Cold Stores in Muktarpur on a Friday afternoon. Photo: TDM
In Munshiganj, the country's leading potato-producing district, the potato market has been experiencing significant instability due to intermediation, resulting in an artificial crisis and soaring prices at the retail level. Local consumers are facing difficulties as the price difference between consumer-wholesale and retail levels has risen to Tk 15 to Tk 19 per kg.
Despite having more than twice the quantity of potatoes in stock compared to the demand, the retail market has witnessed a sudden surge in prices within just a week. Unscrupulous traders have been exploiting the lack of proper market supervision by the local administration to increase prices at the consumer level on various pretexts, causing grievances among common buyers.
While retail raw material traders attribute the price increase to insufficient supply in the market, the agriculture department refutes this claim, stating that most cold storages in the district still hold sufficient potato stock.
As per the District Agriculture Extension Department's information, there are currently 3 lakh 43 thousand 333 metric tons of potatoes stored in 63 cold storages as of July 14, out of 67 in the district.
The average cost of potato production per hectare in Munshiganj this year is Tk 3 lakh 13 thousand. The current season has produced 30.75 metric tons (30 thousand 750 kg) of potatoes per hectare, resulting in a storage cost of Tk 11 to Tk 13 per kg, including production and transportation expenses.
However, despite these numbers, potatoes from cold storage are being sold in the retail market at around Tk 41 to Tk 46 per kg, almost twice the wholesale price. Wholesale traders are selling potatoes at Tk 22 to Tk 26 per kg, with each 50 kg bag priced at Tk 1200 to Tk 1300.
Local farmers report that around 93 percent of the potatoes produced this season have been sold to traders, leaving the majority of control in the hands of intermediaries. Consequently, while intermediaries profit, genuine farmers are deprived of receiving fair prices for their produce.
Rasraj Babu, a local wholesale potato trader, reveals that the increase in electricity costs has raised storage expenses, leading to the storage of over 5,000 sacks of potatoes in cold storage this season. He alleges that large raw material traders from Dhaka are behind the price fluctuations in the retail market, while wholesale traders like him are selling potatoes at regular prices.
The local administration has been reluctant to address the market supervision issue. Dr. Md. Abdul Aziz, Deputy Director of Agriculture Extension Department, states that after selling potatoes to traders, the department lacks the authority to take action against them.
The National Directorate of Consumer Protection responds by saying that it can only act upon receiving written complaints at the consumer level. Assistant Director of Consumer Protection Department, Abdus Salam, assures that legal action will be taken under Section 45 of the Consumer Rights Protection Act 2009 if such complaints are received.
TDM/SD
