Key Highlights
- Govt drops plan to buy 50,000 tonnes of potatoes
- Tk110cr extra cash will go to farmers’ mobile accounts
- Total help for FY26 rises to Tk260cr
- Database of 20 lakh farmers prepared for payment
The agriculture ministry has moved to give more help to potato farmers across Bangladesh after prices fell earlier this year. On 6 November, officials decided that instead of buying potatoes from cold stores, the govt will send Tk110 crore in cash to over 20 lakh growers. This comes on top of Tk150 crore already set aside in the FY26 budget.
Why the govt changed its plan
Potato prices sank to Tk13–14 per kg in July and August, far below the cost of growing and storing the crop. To ease the losses, the govt had first planned to buy 50,000 tonnes and sell them at a lower rate through TCB.
But during a review meeting on 6 November, TCB Chairman Brigadier General Mohammad Faisal Azad said it would be tough to confirm which cold stores held potatoes from real farmers. He warned the plan could end up helping others instead of growers.
He also explained that buying at Tk22 per kg and selling from trucks would push the cost up to Tk32 per kg. Selling at Tk10 would then need Tk22 in subsidy per kg. This meant the Tk110 crore needed for the operation might help farmers more if sent straight to their accounts.
Cash help instead of potatoes
Top officials at the meeting agreed with this view. Agriculture Secretary Mohammad Emdad Ullah Mian and Commerce Secretary Mahbubur Rahman backed the shift from procurement to cash support.
After this, the agriculture ministry asked the Department of Agricultural Extension (DAE) to prepare a full list of real potato growers. DAE has now sent in a list of 20,32,363 farmers, with their phone numbers, mobile money accounts and the land size under potato farming.
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How the subsidy will work
The main budget already covers help for seed and fertiliser. The extra Tk110 crore will be sent to farmers based on irrigation and labour costs per acre. The agriculture ministry has written to the finance ministry asking for the release of funds so payments can start.
Why prices dropped this year
Bangladesh produced 115 lakh tonnes of potatoes in FY25, against a demand of 104 lakh tonnes. The surplus pushed prices down.
The cost of growing potatoes ranged from Tk14–17 per kg. Cold storage rent added Tk6–6.30 per kg and transport added Tk1–2 per kg. Many farmers ended up selling at a loss, raising concern that they may plant less next season.
As of 31 October, cold stores still held 6.83 lakh tonnes of table potatoes and 8.27 lakh tonnes of seed potatoes. New potatoes will reach markets in full scale by February.
The cash help is meant to keep farmers from suffering more losses and to keep potato farming on track for the next season. All eyes are now on the finance ministry to release the funds.
Source: The business standard
Image credit: Manuel Parra – Pexels
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