Page 72 - November 2020

Kitchen Market
Potato price of other vegetables has also
increased since that time. It’s not
like the price shot up suddenly. By
June 2020, potatoes were already
being sold at Tk28-32 per kg, a
65% increase compared to 2019.
price hike The crossing of Tk50-55 is just a
trend that has been started way
earlier in this year. It’s surprising
since generally, the price of this
particular food source stays around
Tk20-22 per kg and never exceeded
the Tk30 mark even when
production was low compared to
the 2019-2020 yield. Let’s have a
closer look. According to a report
Plenty production, by the Government Department of
Agriculture Marketing, the
scarce supply production cost of per kg potatoes
in the 2019-20 fiscal year was
Tk8.32, while farmers sold them at
Tk 10-12 per kg. How come this
By Amarta Galib Chowdhury
same product is sold at more than
Tk50 in the retail market!
Let’s have a more detailed look. At
the start of this year, cold storages
sold potatoes at Tk19 per kg. This
includes grading charges (Tk0.45),
storage rent (Tk3.66 per kg), and
weight loss (Tk0.88). During the
start of the COVID-19 pandemic in
Bangladesh, prices increased to
many countries and holds an essential Tk22.50. But since August, prices
position in the human food supply. shot up to Tk35 per kg. And by
Bangladesh is no different. Potato is used October, it reached Tk40-42 per kg.
as a vegetable, snacks, ingredients for So this was the price at the cold
preparing other dishes and also, half-rotten storage gate, and it crosses Tk50
ones are used as cow fodder. It’s perhaps a by the time it comes to the retail
staple diet for bachelors and the poor market.
section of the population. A hike in potato
price is a thing of concern. However, it
seems unlikely, as the production was never Government
thought to be an issue. According to the explanation for
Bangladesh Bureau of Statistics,
Bangladesh produces about 10 million the hike
tonnes of potato per year, whereas yearly Agricultural minister of
demand is 7 to 8 million tonnes. So how Bangladesh, Abdur Razzaque,
come the hike? And what’s the nature of it? indicates several reasons for the
sudden price hike. According to
The hike him, a four-month long flood in
northern Bangladesh, one of the
By mid-October 2020, one kg of cardinal or
W diamond variety of potato was sold at hampered production. Besides, cold
chief potato growing regions, has
When Spaniards brought potatoes from the New
World in the mid 16th century, none of them,
Tk50-55 per kg in the open market.
storage facilities don’t have enough
Numbers clocked Tk60 by late October.
neither the old world habitants, knew what this
potatoes stored compared to
Before reaching at this level, potato prices
seemingly tasteless, odorless vegetable would
become in the future. Between 1700 to 1900, the
pandemic played a role behind this
potato has become the world’s fourth most produced had already risen by 20% since the start of previous years. The coronavirus
that month. If you’re wondering, it’s a 100
food crop. And for valid reasons thanks to its percent price hike compared to last year. hike, according to the government
versatility as a food source. It’s a staple food in The public was mad understandably. The and various other sources. During
66
the lockdown, the government
was handing free or subsidized
aid to the general people.
Potatoes were distributed, and
many argue these have caused a
shortage despite considerable
production. Foreign aid agencies
are also to be partly responsible.
They bought a massive amount
of this vegetable in the
April-May timeline to distribute
among 10-12 lakh Rohingya
refugees camped in Cox’s Bazar.
Since there was a massive
production and a
government-imposed subsidy of
20%, potatoes were exported in
large volumes. Last year, from
July to September, potato exports
amounted to just 0.3 million US
dollars. In contrast, this year,
more than 10 million dollar
worth of potatoes have been
exported at the same time. This
probably created a shortage in
the home market. There is also a
price hike going on in India and
Nepal. In the neighboring Indian
state of West Bengal, the price is
around Rs34-38 (Tk39-43) per
kg. This might have a spillover
effect on the Bangladeshi
market. The government also
blames corrupt business
practices to be a crucial reason.
Storage owners and business
entities are holding back stored
potatoes or selling at inflated
prices. Despite production
reaching more than 1.09 crore
tonnes during the fiscal year of
2019-2020 against a demand of
77 lakh tonnes in the home
market, general people are
finding it tough to buy this
essential vegetable.
Cold Storage
owners differ in
opinion
Contradictory to government
reports, store owners and traders
are telling a different story. The
last two years’ bumper
production arguably made
potatoes not profitable for the
farmers; hence, production may
have been less than predicted.
Cold storage association says
this year’s potato storage
amounted to 45 lakh tonnes, 10
lakh tonnes less than the
previous year. Also, they refute
the government estimates and
predict 2020s potato production
is around 85 lakh tonnes. About
11 lakh tonnes are stored as
seed for the coming season.
There are other complaints.
Electricity prices have risen this
year, making storage costly.
Facility owners say they have
nothing to profit from illegally
storing the vegetable, as they increased blood sugar control, and
a reduction in heart diseases is the
just rent their facilities. Since
prime benefit of potato
holding costs have risen, they
consumption. Its antioxidants
can’t lower the prices.
However, specialists voice
provide immunity against chronic
diseases. Besides all these
doubt in this claim.
A secret nutritional values, potatoes are
incredibly filling, helping to reduce
food intake. Also, it provides
syndicate?
much-needed food security for
low-income people. It is widely
There is a well-known
used as a supplement for meat and
Bangladeshi market. Often,
phenomenon in the vegetables. Understandably, a
price hike in potatoes creates a
despite massive production,
price skyrockets, thanks to long-term ill impact on the mass
alleged corruption among population’s nutritional level.
traders and suppliers. In many Government
instances, secretly massive
amounts of products are measures
stored, and after prices rise
they are sold at a very The government has already taken
profitable rate. steps to counter soaring prices.
The unexpected hike in the The Department of Agricultural
price of onions is the most Marketing has fixed Tk30 per kg
recent example of this. Last price and instructed Deputy
year, India imposed a ban on Commissioners (DC) to ensure
onion export. Prices in the potatoes are sold at this rate. On
Bangladeshi market the other hand, wholesale prices
skyrocketed as a result. It was have been fixed at 25tk per kg, and
Tk50 per kg in August, and by the cold storage selling price is
November, it crossed Tk200 per Tk23. Various government
kg. Of course, the export ban agencies are reported to be
was a reason, but various task monitoring this fixed-rate
force operations revealed a accordingly.
vast amount of onion was A food crisis The measures are already yielding
illegally stored. The same Recently, essential some results. According to the
tendency has been common in commodities like onions, rice, Trading Corporation of Bangladesh
the case of many essential chickens, and potatoes all (TCB), the price has decreased by
commodities. During have experienced price hikes to 9.5 percent and is likely to follow.
Ramadan, prices regularly some extent. There was a time Various markets are selling
surge up. Even right now, when the government itself potatoes at 45tk per kg (retail
many items like rice or other promoted potato consumption price). Task Force operations have
vegetables are being sold at a to relieve pressure on already revealed some corrupt
higher price. Bangladesh’s staple food, rice. businessmen storing potatoes
It begs the question - How Lower-income households and illegally.
come this vegetable, which students are very dependent We were afraid the production of
costs around Tk8-9 per kg to on potatoes; a dependence food crops would plummet due to
the COVID-19 pandemic. Our
produce, reaches Tk60 per kg
in the retail market? It’s which increased more due to farmers proved this fear wrong, yet
alleged that since July-August, the pandemic. However, this they didn’t benefit from their hard
widespread demand is not
work. Mismanagement and
cold storages around the
country stopped the supply of search for a supplementary intermediaries are eating up the
being met, creating pressure to
results. Specialists warn if the
stored potatoes, creating an
diet, which is almost
government doesn’t formulate a
artificial crisis. Various reports
non-existent. Potatoes contain
policy regarding potato production
show that cold storages have
significant amounts of fiber,
to per kg, and the wholesale
syndicates and corrupt business
been selling potatoes at Tk35 potassium, manganese, and take staunch steps against
magnesium, phosphorus, and
price is hovering around Tk40 vitamin (B6 and C). It lacks entities, price hikes like this will
in Kawran Bazar. cholesterol. Higher immunity, come again and again.