Rangpur Farmers Incur Loss
Potato production and storage costs come around Tk 24, sells at Tk 12
Photo: Agamir Somoy
Farmers seem nonchalant in retrieving potatoes stored in cold storages in Rangpur due to excessive expenses. The cost of production for a kilogram of potato stands at Tk 17 and on top of it nearly Tk 7 goes to cold storages as rent. Altogether, the cost per kg of potatoes comes around Tk 24.
Yet farmers are being forced to sell them at a maximum of Tk 12 per kg after taking them out of cold storage. As a result, many farmers do not dare taking out their stored potatoes for fear of losses. About 1.5 lakh metric tonnes of potatoes are still stored in 42 cold storages in Rangpur. In such a situation, cold storage owners also fear large-scale financial losses.
According to relevant sources, the total capacity of the 42 cold storages in Rangpur is 4,70,600 metric tonnes. Some 4,88,638 metric tonnes of potatoes have been stored this season. Of this, 3,24,948 metric tonnes are kitchen potatoes and 1,63,690 metric tonnes are seed potatoes. As of October 31, about 2.5 lakh metric tonnes of kitchen potatoes and 6,000 metric tonnes of seed potatoes have been taken away. Sources also said that since last June, an average of 50,000 metric tonnes of table potatoes have been taken out each month.
Farmers say they have once again incurred losses after cultivating potatoes in Rangpur. Because market prices are much lower than production costs, many cannot recover even half of their expenses by selling stored potatoes. Many farmers who suffered losses last year borrowed money this time and kept their potatoes in cold storage hoping for better prices. But the market situation has not changed. Rather, the burden of losses is increasing further.
Expressing anger, they said that this year the cost of potato production has increased, including seeds, fertilizer, pesticides, irrigation, and laborers' wages. Added to this are cold storage rent and preservation costs. But because wholesale potato prices have fallen in the market, they are being forced to sell at a much lower price than the production cost.
Investigations show that at present potatoes are being sold at the cold storage gate at a maximum rate of Tk 12 per kg. In the retail market, they are being sold at Tk 18 to Tk 20. Meanwhile, new potatoes will start arriving in the market toward the end of this month. As a result, farmers fear that the price of stored potatoes will fall further. In this situation, many have decided not to take their potatoes out of cold storages.
Shawkat Ali, a farmer from Chengmari area of Gangachara in Rangpur, said he suffered losses last year too after cultivating potatoes. This time, hoping for a good price, he borrowed money and kept potatoes in cold storage. But if he takes out the potatoes at the current market price, it will not even cover the transport fare and cold storage rent. Rather, he will have to pay money from his own pocket. So the potatoes kept in cold storage are on the verge of being left there.
Bhupal Chandra Roy, a farmer from the Raghubazar area of Rangpur city, has currently stopped taking potatoes out of cold storage because, if he does so at this moment, he will lose at least Tk 12 per kg. He said he has kept a total of 500 sacks of potatoes in Sabuj Bangla and Apu Munshi cold storages in the city. At present, potatoes are being sold at Tk 12 per kg at the cold storage gate. Yet production cost, cold storage rent, sack packing, and transport, along with other expenses, bring the cost to at least Tk 24 per kg. In such a situation, not only he but many farmers in his area have almost stopped taking potatoes out of cold storage. He did not take out his potatoes last year either. He said he suffered a loss of about Tk 8 lakh as a result.Haidar Ali, a farmer from Payraband Beltali area of Mithapukur, said he recently took out 250 sacks of potatoes from cold storage and sold them at Tk 15 per kg. As the price has now dropped to Tk 12, he is worried about how much he will get from the remaining 500 sacks. Fearing a large financial loss, he has decided not to take out the rest of the potatoes in the end.According to sources at the Rangpur Department of Agricultural Marketing, farmers and traders store about 5 lakh metric tonnes of potatoes in the district's 42 cold storages. But because current market prices are lower than production costs, those storing potatoes are showing reluctance to take them out. Sources also said that as of October 31, about 1.5 lakh metric tonnes of potatoes remain in stock in the cold storages.Meanwhile, cold storage owners have also fallen into trouble because farmers are not taking out their potatoes. Although many cold storage authorities have issued notices asking farmers to take out their potatoes, they do not want to take them. Subhas Mukherjee, manager of Shahjalal Cold Storage in Badarganj and MNT Cold Storage in Gangachara, said the two cold storages have a capacity of 24,000 metric tonnes. Fifty percent of the stored potatoes are still lying there. Since potatoes are currently being sold at a maximum of Tk 12 at the cold storage gate, farmers are not interested in taking out their potatoes for fear of losses. He said cold storage owners will also suffer losses as a result.
