Potatoes are currently selling in the market for BDT 14 to 17 per kilogram, although farmers are spending about BDT 13 to 14 per kilogram to produce them. Similarly, tomatoes and onions are also being sold below their production costs. Farmers say it costs them BDT 12 to 13 to produce each kilogram of tomatoes, which are being sold outside the capital at prices ranging from BDT 8 to 18 per kilogram, depending on quality and location. The production cost of onions is about BDT 38 to 40 per kilogram, but in some areas, they are being sold for as low as BDT 35.
According to stakeholders, the sudden increase in cold storage rental fees is one of the main reasons why the prices of these agricultural products have dropped below production costs. Last season, farmers received good prices for potatoes, which encouraged them to cultivate 12 percent more land this year. The country is expecting a harvest of over 12 million tons. However, farmers are struggling to even cover their production costs. Agriculture experts say that with cold storage fees increasing by 60 percent, many farmers are finding it difficult to store their potatoes. As a result, they’re being forced to sell their harvests directly from the fields at lower prices rather than risk paying high storage fees for six months. This has led to retail potato prices dropping below BDT 20 per kilogram in the peak season. However, prices are expected to rise once the season ends. The same issue is affecting the markets for onions and tomatoes, where poor storage management is leading to similar challenges.
Agricultural economists note that after rice, potatoes are one of the most essential staples in Bangladesh. When potato prices fall, it affects the pricing of other agricultural products as well. Favorable weather conditions have led to a higher potato yield this year, but the sudden rise in storage costs has left farmers struggling. Unable to store their perishable goods, they are forced to sell them at low prices.
Farmers across the country are reporting losses, saying they cannot even recover their production costs with current prices. Some have even protested by dumping potatoes on the roads, frustrated by their inability to store the crop. One such farmer, Moru Bepari from Raldia village in Chandpur Sadar upazila, told Bonik Barta, “I sold potatoes from the field at BDT 13 per kilogram, though it cost me BDT 14 to produce each kilogram. I had planned to store the remaining potatoes and sell them later when prices rise. But suddenly, the cold storage owners increased the rent. If I store the potatoes at these higher rates, I’ll end up with more losses instead of making a profit.”
Market analysts warn that if farmers cannot afford storage facilities due to the higher fees, middlemen might regain control over the potato market. This could lead to market instability by the end of the season, making prices unpredictable for consumers. Despite a bumper harvest, experts fear that the country may still need to import essential agricultural products such as potatoes and onions if prices continue to be unstable.
A large portion of Bangladesh’s potato supply comes from the Bogura district. A visit to the wholesale market at Mahasthanhaat revealed that during the early part of the harvest season last year, around mid-January 2024, potatoes were selling for BDT 1,100 to 1,300 per maund (1 maund = approx 37.32 kg). By the end of February, prices dropped to BDT 700 per maund. However, this year, although the initial price during the 2025 harvest season started at BDT 1,100 per maund, it quickly dropped to BDT 450 to 650 by mid-January, depending on the variety. This price range has continued till now.
Potatoes are one of the key cash crops in Bogura. According to the Department of Agricultural Extension, the district is expected to produce about 1.4 million tons of potatoes this season. There are 42 cold storage facilities in the region with a combined storage capacity of about 400,000 tons. However, with the increase in storage fees and limited storage space, marginal farmers are facing significant difficulties. Experts fear that this situation may lead to further complications by the end of the season.
In Rangpur, another major potato-producing district, potatoes sold for BDT 25 to 30 per kilogram around this time last year. Now, the price has plummeted to just BDT 9 to 10 per kilogram. With prices dropping sharply and storage fees rising, farmers are increasingly worried about storing their potatoes. Across the country, the number and capacity of cold storage facilities are insufficient compared to production levels.
Market experts believe the government needs to step in to protect these marginal farmers. Agricultural economist Dr. Jahangir Alam told Bonik Barta, “If farmers have to store potatoes at higher rental rates, their production costs will increase significantly. That’s why they’re selling potatoes at nearly half the production cost. To protect farmers, the government could reserve 30 percent of storage space in cold storages for marginal farmers. Additionally, a subsidy of BDT 2 per kilogram on storage fees could be offered. The government could also consider storing five to seven lakh kilograms of potatoes itself, releasing them in the market during the off-season to stabilize prices.”
Joypurhat, the second-largest potato-producing district in Bangladesh, has set a production target of 1,000,500 tons this year. However, the available cold storage capacity in the district is only about 200,000 tons. Local farmers are also frustrated by the low prices. Nazir Hossain, a farmer from Joypurhat Sadar upazila, said, “It seems I’ll never farm potatoes again. We work so hard, and our costs increase both during cultivation and harvest. But when it’s time to sell, we just face losses.”
On February 8, the Bangladesh Cold Storage Association (BCSA) announced an increase in potato storage fees during a press conference. They set the storage fee at BDT 8 per kilogram and imposed a rule that each sack must contain 50 kilograms of potatoes. Previously, farmers could store 70-kilogram sacks for BDT 350, which meant a storage fee of BDT 5 per kilogram. Under the new rule, the storage fee increased by 60 percent to BDT 8 per kilogram. However, cold storage owners claimed that the fee had only increased from BDT 7 to BDT 8 per kilogram.
When asked about the fee hike, Parimal Prasad, a cold storage owner from Bogura, said, “Electricity costs are higher now. That’s why the storage fee was initially set at BDT 8 per kilogram, but then government rate was set at BDT 6.75. There’s also a shortage of storage space, but we’re still following the government rate for storage.”
According to the Agricultural Marketing Act of 2018, any increase or adjustment in storage fees must be made through a government gazette based on the advice of the Director General of the Department of Agricultural Marketing. However, in this case, the fee increase was announced during a press conference. Later, after farmers protested, the Department of Agricultural Marketing reduced the fee by BDT 1.25, setting it at BDT 6.75 per kilogram. Yet, farmers have rejected this rate and continue their protests.
They are demanding that the storage fee be reduced to BDT 1.5 per kilogram. They also want the government to purchase potatoes from farmers, store them like it does for rice, facilitate exports, and provide compensation to affected farmers. Just last week, the Rangpur district’s Potato Farmers and Traders Association organized protests and submitted a memorandum to local authorities, highlighting these demands.
Anwar Hossain Bablu, convener of the district’s Alu Chashi Shongram Committee, and its secretary, Saiful Islam, said, “This year, farmers are facing ruin because of low potato prices. The production cost has exceeded BDT 20 per kilogram. Due to high storage fees, farmers and traders can’t afford to store potatoes. They’re being forced to sell at half the production cost. Farmers had demanded a storage fee of BDT 1.5 per kilogram.”
On the other hand, cold storage owners argued that rising business costs, including higher bank interest rates, have led to the fee increase. Mostofa Azad Chowdhury Babu, President of the Bangladesh Cold Storage Association, told Bonik Barta, “Our biggest expenses are loan interest and electricity bills. If the government wants to protect farmers, it should lower our bank interest rates, which have risen from 9 to 17 percent. The government has set the current rate, but we’re incurring losses. Our actual cost is about BDT 11 per kilogram, but we had set it at BDT 8. The government later reduced it, and we accepted it in the greater interest of the country. But in a free-market economy, you can’t just impose prices like this. If the government wants lower fees, it can build its own cold storages for farmers. And it’s actually the middlemen, not the farmers, leading the protests over storage fees.”
According to the Department of Agricultural Extension (DAE), although the target for potato cultivation this year was set at 467,000 hectares, potatoes were actually cultivated on 524,000 hectares of land. Encouraged by the higher market prices last season, farmers enthusiastically expanded their potato farming this year. The country’s annual potato demand is around 8 to 9 million tons, while production in the 2023-24 fiscal year reached nearly 11 million tons.
Questioning the logic behind the increased storage fees, Professor Abu Noman Faruq Ahmmed of Sher-e-Bangla Agricultural University told Bonik Barta, “This year’s higher production has led to market manipulation. Recently, electricity prices haven’t even increased, so on what grounds have storage fees doubled? Cold storage owners need to be held accountable.”
It is not just potatoes—prices for other agricultural products are also declining. This winter, farmers struggled to get fair prices for cauliflower. Despite production costs of BDT 10 per kilogram, they were forced to sell for just BDT 2-3. In some cases, farmers even fed their unsold cauliflower to cattle. Similarly, tomato prices have dropped significantly. Across the country, tomatoes are selling for BDT 8-18 per kilogram, although in the capital, prices have been seen around BDT 20. Even onion prices have fallen, with rates dropping to as low as BDT 35 per kilogram in some areas, while farmers’ production costs hover around BDT 38-40.
When asked about the overall situation, Agriculture Secretary Dr. Mohammad Emdad Ullah Mian told Bonik Barta, “We are taking various initiatives to protect farmers’ interests. To support crop storage, we’re building 100 mini cold storages across the country. For onion storage, we’re encouraging farmers to build small-scale storage units at home, which can be constructed for just BDT 35,000-40,000. The government will provide around BDT 25,000 in support. This will allow onions to be stored for six to seven months. We’ve also revised potato storage fees. Since potato production is high this year, we’re engaging with exporters to facilitate potato exports and resolve any challenges. Additionally, we're planning to build cold storages at the farmer level for vegetables.”