Fear of Tk 150 Crore in Losses Grips Potato Farmers and Traders in Joypurhat

Potato was once the dream crop of farmers in Joypurhat. A field full of potatoes and a good harvest meant a smile on the farmer’s face and peace at home. Over time, the same potato has become a cause of worry and loss for farmers. Potato production grows every year, but market demand and storage capacity do not grow at the same pace. As a result, farmers and traders are in trouble with the huge amount of potatoes they have produced.

Potatoes are piling up in cold storages, but the market has no demand for them, and losses are not falling. The government has cut the storage cost, but the situation has not improved. Slow delivery of potatoes from cold storages and power and fuel oil shortages have added to the problem. Those involved fear a loss of about Tk 150 crore in Joypurhat this year. They say the government must take effective steps quickly to deal with this situation.

Farmers grew potatoes on about 39,330 hectares of land in Joypurhat this year. The production was about 1 million metric tons. But the 22 cold storages in the district can store only 237,212 metric tons. Even so, about 250,000 metric tons of potatoes have been stored. This means cold storages hold more potatoes than their capacity. Production is also higher than demand, so the market has too much supply.

Because prices are low, a large number of farmers and traders are storing potatoes in cold storages instead of selling them. This year, they find no relief there either. Storing more potatoes than the capacity raises the risk of poor quality and rotting. Farmers and traders fear a big loss in this situation.

Mr. Abu Rayhan, manager of M Israt Himagar Limited in Joypurhat, told Daily Inqilab that about 90 percent of the potatoes were delivered from cold storages at this time last year. This year, only about 50 percent have been delivered. This means the delivery rate is about 40 percent lower than at the same time last year. Many farmers and traders took loans to store potatoes. With no demand and slow sales, they now fear they will not get their capital back.

The government has cut the storage cost by Tk 6.75 per kg to reduce losses for farmers and traders. This saves about Tk 48, but the benefit does not reach their pockets. They still have to pay Tk 400 to 420 for each sack of potatoes. The power and fuel oil crisis has added to the trouble. When power stays off for a long time, storages must run generators to keep the temperature under control. This raises the storage cost. Potatoes that stay in storage for a long time also face a higher risk of rotting and losing quality.

Mr. Bachchu Mia, a farmer from Kadirpur village in Kalai upazila of Joypurhat, told Daily Inqilab that farmers have not got a fair price for potatoes for the last three years. He said he expected profit from storing potatoes, but he is losing capital instead. He expressed his frustration.

Mr. Sohel Ahmed from Panchbibi upazila of Joypurhat said farmers see darkness when they try to sell potatoes to cover their extra costs. He said they cannot even recover the production cost, let alone the cold storage rent. Potato farmers are in deep trouble under a mountain of losses.

Mr. Abdul Alim, a potato trader from Surail village in Ahmmedabad Union of Kalai upazila, told Daily Inqilab that he bought 4,000 sacks of potatoes for Tk 56 lakh and stored them, hoping for a good price. Because prices fell, he had to sell them for only Tk 5.2 lakh. He lost about Tk 51 lakh. He said this loss has wiped out all his savings.

Mr. Abu Rayhan of M Israt Himagar Limited said potatoes must be taken out of the storage within a month and a half. But he said it is impossible to deliver even 50 percent of the stored potatoes now. He said they also doubt whether they will get the storage rent. Farmers and traders took loans from various institutions to store potatoes, and many of them are close to losing everything. People are also losing interest in the potato business.

Mr. Mehedi Hasan, Agricultural Marketing Officer of Joypurhat, told Daily Inqilab that production is rising, but markets and storage facilities are not growing at the same pace. He said the Department of Agriculture is urging that production plans be matched with market management, storage and more uses of potatoes. He said production is high, so market supply has grown. The ministry has decided to buy potatoes for the government, but no instruction has come yet. He said efforts are going on to find export and other markets. He also warned of strict action against anyone who breaks government rules.

The potato that once brought dreams and peace to the homes of Joypurhat farmers has now become a burden of loss. Farmers and traders fear that about 50,000 metric tons of potatoes may remain stuck in cold storages again this year. They warn that the burden of loss will grow if the government does not take timely and effective steps, expand markets and arrange the delivery of potatoes.