Potato economy: Price crash in Bogura and Joypurhat, farmers’ crisis and the way forward

In Bangladesh's agrarian economy, the potato is not only a staple food item but also a vital cash crop. Each year, a large share of the national potato yield originates from the northern districts of Bogura and Joypurhat. However, in early 2025, these major production hubs witnessed a sharp and unexpected drop in prices. As a result, farmers are now grappling with significant financial loss and uncertainty. This scenario demands a thorough reassessment of the potato economy and its management systems.

Production Scenario: A Bumper Harvest and Its Cost

In the 2024–25 growing season, total potato production in Bangladesh hit a record 11.5 million metric tons, the highest in five years. Of this, Bogura alone accounted for around 2.2 million metric tons, and Joypurhat contributed 850,000 metric tons (Source: Department of Agricultural Extension). Together, these two districts produce nearly 26–28% of the country's total potato output.

However, despite the record harvest, a lack of cold storage, inefficient distribution systems, and weak demand caused market oversaturation. Consequently, the average farmgate price plummeted to Tk 5–8 per kg, far below the production cost of Tk 12–14 per kg. This has led to losses of Tk 4–6 per kg for farmers, severely impacting their livelihoods.

Causes of the Price Fall: Planning Flaws or Market Manipulation?

The potato price crash is the result of multiple structural and policy-related issues:

1. Over production vs Limited Demand

Annual domestic demand for potatoes in Bangladesh stands at 8.5–9 million metric tons. However, current production has exceeded this by 2.5 million metric tons, creating a large unsold surplus.

2. Insufficient Cold Storage Capacity

There are about 430 cold storages across Bangladesh, most operated privately. Their total capacity is 5.7–6 million metric tons, which covers only 50–55% of national production. A significant portion of the crop, therefore, is sold immediately under duress.

3. Syndicate Control & Middlemen Dominance

In many markets, powerful syndicates of wholesalers and middlemen dictate prices. Farmers are unable to access fair markets and are often forced to sell their produce at exploitative rates.

4. Export Challenges

In FY 2023–24, Bangladesh exported only 180,000 metric tons of potatoes (Source: Ministry of Commerce). Despite demand in neighboring countries such as Nepal, Bhutan, Sri Lanka, and the Maldives, export volumes remain low due to poor packaging, lack of cold chain logistics, and minimal government facilitation.

Farmer Losses and Financial Stress: A Data-Driven Breakdown

The cost of cultivating one bigha of land with potatoes ranges from Tk 35,000 to 40,000, yielding 80–100 maunds per bigha. At current prices, this generates only Tk 25,000–28,000, resulting in an average loss of Tk 8,000–12,000 per bigha.

A 2025 rural impact survey shows:

• 72% of farmers failed to recover their production costs.
• A large number of these farmers are also in debt, having borrowed from banks or NGOs.
• The price crash has pushed many towards legal and social distress due to unpaid loans.

Policy Recommendations: Practical Solutions for a Sustainable Future

To safeguard the potato economy and the lives tied to it, the following steps are recommended:

1. Introduce Minimum Support Price (MSP) and Government Procurement

Set a guaranteed procurement rate of Tk 12–14 per kg and buy directly from farmers through the Food Department or Agricultural Marketing Department.

2. Boost Exports through Incentives and Streamlined Policy

Offer 20% cash incentives for exporters and simplify certification processes. Target to increase exports to 500,000 metric tons by FY 2025–26.

3. Establish Digital Farmer Markets

Launch a government-backed app-based marketplace in each upazila to connect farmers directly to consumers, eliminating middlemen.

4. Expand Cold Storage Infrastructure

Offer 50% subsidies for new cold storage construction and reduce storage charges by at least 50% for farmers.

5. Introduce Crop Insurance & Loan Rescheduling

Provide crop insurance in vulnerable areas and enable loan restructuring with interest waivers for affected farmers.

Action Now to Protect Tomorrow

Potatoes are not just produced—they are the economic backbone of hundreds of thousands of Bangladeshi farming families. In regions like Bogura and Joypurhat, where farmers are facing devastating price crashes, the entire rural economy is at stake.

The time for policy discussion is over—concrete actions are required. Government bodies, private stakeholders, and civil society must come together to protect farmers' rights, ensure fair markets, and support sustainable agriculture.

Only by doing so can we preserve both livelihoods and national food security.

The writer is a manager (SPO) at  Rajshahi Krishi Unnayan Bank's (RAKUB) Alirhat Branch. He is also a data analyst and an AI researcher. He can be contacted at tawfiqul1983@gmail.com.