The potato market in the country is not facing any visible crisis. While the season for old potatoes is nearing its end, the supply of new potatoes has started. There are now more seasonal potato vendors selling from vans at street corners than before. Despite this, the price of potatoes is still not decreasing.
The Consumer Rights Department, Ministry of Commerce, and task force committees across various districts are overseeing the market in an effort to reduce prices. However, consumers are still facing difficulties as potato prices remain high, with the cost per kilogram not dropping below 75 taka per kg.The cost of slightly better-quality potatoes is even higher, reaching at least 80 taka. Moreover, consumers have to pay double the price for imported potatoes.
Retailers say that currently, potatoes yield more profit compared to any other vegetable. That’s why potatoes are being sold at street corners.
Retailers say the reason for the high potato prices is the damage caused to potato production by the floods, which has led to the increased price of potatoes.
Buyers say that in the past, potatoes were an affordable food for the poor when prices of other essentials went up. People could survive by eating mashed potatoes with rice. But now, the potato market is unstable because of a syndicate Even the potatoes that traders import at lower prices are not available in the market for less than 75 taka. They are importing large quantities of potatoes and selling them at inflated prices, deceiving both the government and consumers.
On September 5, the National Board of Revenue (NBR) issued a notification reducing the existing 25% import duty on potatoes to 15%. At the same time, the 3% regulatory duty on potato imports was completely withdrawn. The reduced tax on potatoes will remain effective until November 30th. However, imported potatoes are still being sold for 75 taka in the market, meaning ordinary consumers are not benefiting from the tax reduction.
The National Consumer Rights Protection Department reports that the cost of importing potatoes from India is between 21.30 and 21.60 taka per kg. When factoring in transportation, additional costs, and profit margins, these potatoes should be sold for 25 to 28 taka. At the wholesale level, the price should range from 30 to 35 taka per kg for consumers. But consumers are paying up to 75 taka per kilogram. This price surge is being driven by importers and the wholesale syndicate operating in Dhaka's Shyam Bazar. It is claimed that the commission-based sales system used by wholesalers is playing a major role in driving up potato prices.
The latest figures from the Trading Corporation of Bangladesh show that potatoes are currently priced between 75 to 85 taka per kilogram in the market. Just last week, the price was 65 to 75 taka, and a month ago, it was 55 to 60 taka. The Department of Agricultural Marketing has stated that the fair price for potatoes at the consumer level is 46 taka per kilogram. They explained that potatoes are now being sold for 70 to 80 taka per kg. Before the reduction in tax, they were priced between 50 to 60 taka. A month ago, potatoes were priced between 50 to 60 taka, while around the same time in 2023, the price ranged from 40 to 45 taka.
Advocate Humayun Kabir Bhuiyan, the General Secretary of the Consumers Association of Bangladesh (CAB), has pointed out that unscrupulous traders are responsible for the inflated potato prices. He highlighted that these traders are artificially driving up the price by throwing potatoes into rivers, yet still refusing to sell them at lower prices.
Deceptive potato traders have effectively held the entire country’s consumers hostage. They are convinced that by selling potatoes at 75 taka, they can make twice the profit, and even if some potatoes spoil, they don’t face any loss. In this scenario, we believe that the government agencies have not been doing enough to help. Had they effectively monitored the market, this price hike could have been prevented.
Bd-pratidin English/ Afia
