Ensuring Fair Returns for Bangladeshi Potato Farmers in 2025: Challenges and Way forward – Dr. Md. Mahfuz  Alam

Bangladesh is an agricultural country where a significant portion of the population depends on farming for their livelihood. Among the many crops cultivated, potatoes play a crucial role in the agrarian economy. However, in 2025, Bangladeshi farmers have been facing severe challenges in obtaining fair returns from potato cultivation. Despite a good harvest, numerous issues such as market fluctuations, rising production costs, inadequate storage facilities, and policy inefficiencies have left farmers struggling to secure a sustainable income. This write-up explores the underlying causes, impacts, and potential solutions to the crisis faced by potato farmers in Bangladesh and provides a roadmap for the way forward.

Importance

Potatoes are one of the staple crops in Bangladesh, grown extensively in districts such as Rangpur, Bogura, Munshiganj, and Dinajpur. The country is among the top potato-producing nations in the world, with the crop contributing significantly to food security and the economy. Farmers prefer potato cultivation due to its relatively short growing cycle, high yield potential, and strong domestic and international demand.

Despite these advantages, the sector faces structural and operational issues that hinder farmers from receiving appropriate returns. The 2025 crisis has highlighted the vulnerabilities of potato cultivation and marketing systems in Bangladesh.

Reasons for Low Returns in 2025

1. Market Price Fluctuations

One of the primary reasons for farmers’ financial distress is the volatility of potato prices. In 2025, an oversupply of potatoes in the domestic market led to a significant drop in prices. Farmers who expected a profitable season ended up selling their produce at rates far below the production cost. Middlemen and wholesalers took advantage of the situation, purchasing potatoes at extremely low prices while consumers still paid a relatively high price.

2. High Production Costs

The cost of potato farming has increased due to several factors, including:

ü Rising prices of seeds, fertilizers, and pesticides

ü Increased fuel and electricity costs for irrigation

ü Higher labor wages

While the production cost per kilogram of potatoes surged, the selling price did not compensate farmers adequately, leading to financial losses.

3. Lack of Proper Storage Facilities

Storage is a critical factor in the profitability of potato farming. Bangladesh has limited cold storage facilities, and existing ones charge high fees that small-scale farmers cannot afford. Due to the lack of storage options, farmers are forced to sell their produce immediately after harvest when prices are at their lowest. Additionally, many cold storage units are controlled by middlemen and traders who manipulate market prices to their advantage.

4. Exploitation by Middlemen

The supply chain of potatoes in Bangladesh involves multiple intermediaries, including brokers, wholesalers, and retailers. These middlemen often exploit farmers by offering unreasonably low prices, while they sell at much higher rates in urban markets. The absence of direct farmer-to-market linkages further exacerbates this issue.

5. Climate Change and Crop Losses

Unpredictable weather conditions in October and November 2024, including untimely rainfall and temperature fluctuations, led to damage and higher seed prices of potato.

6. Weak Government Policies and Support Systems

Although the Bangladeshi government has taken several initiatives to support agriculture, many policies have not been effectively implemented. Some of the key issues include:

● Lack of fair pricing mechanisms

● Delayed subsidies and inadequate financial support

● Insufficient training and awareness programs for farmers

Impact of Low Returns on Farmers

The failure to secure appropriate returns has had devastating consequences for Bangladeshi farmers:

1. Increased Debt Burden

Many farmers take loans to finance their cultivation. Due to poor returns, they struggle to repay these debts, leading to financial distress and dependence on informal money lenders, who charge high-interest rates.

2. Decline in Agricultural Investment

Lower profitability discourages farmers from reinvesting in agriculture. Many have started shifting to alternative crops or leaving farming altogether in search of other livelihood options.

3. Psychological and Social Consequences

Financial hardships have led to rising stress and mental health issues among farmers. In extreme cases, some farmers have even resorted to suicide due to the inability to support their families.

4. Food Security Concerns

A reduction in potato production due to farmer distress could affect food security in the long term. The affordability of potatoes for consumers could also be impacted if production declines in future seasons.

The Way Forward: Strategies to Improve Returns for Farmers

Addressing the crisis requires a multi-faceted approach involving government intervention, technological advancements, and policy reforms.

1. Establishing a Fair Pricing Mechanism

The government should introduce a minimum support price (MSP) for potatoes to protect farmers from drastic price drops. A well-regulated pricing system can help ensure that farmers receive a fair return on their investment.

2. Expanding Cold Storage Facilities

Investment in cold storage infrastructure, especially in major potato-growing regions, is essential. The government and private sector should collaborate to increase storage capacity and provide affordable access to farmers.

3. Strengthening Farmer Cooperatives

Encouraging farmers to form cooperatives can help them negotiate better prices, reduce dependency on middlemen, and directly access markets. Cooperatives can also facilitate collective investments in storage and transportation.

4. Promoting Export Opportunities

Expanding export markets for Bangladeshi potatoes can stabilize prices and create additional revenue streams. The government should work on trade agreements and meet international quality standards to enhance potato exports.

5. Providing Financial and Technical Support

●             Offering subsidized seeds, fertilizers, and farming equipment

●             Introducing low-interest loans for farmers

●             Conducting training programs on modern farming techniques and climate-resilient agriculture

6. Strengthening Digital and Market Access

Digital platforms can connect farmers directly with consumers, reducing middlemen exploitation. Online marketplaces, mobile apps, and government-supported e-commerce platforms can be beneficial in ensuring fair pricing.

Conclusion

The crisis of potato farmers in Bangladesh in 2025 highlights the deep-rooted challenges in the agricultural sector. Without timely intervention, many farmers may abandon potato cultivation, leading to negative consequences for the economy and food security. A combination of policy reforms, infrastructure improvements, and financial support is crucial to ensuring that farmers receive fair returns for their hard work. Sustainable solutions will not only improve farmers’ livelihoods but also strengthen Bangladesh’s agricultural sector in the long run.

*Dr. Md. Mahfuz  Alam, Principal Scientific Officer, Crops Division, Bangladesh Agricultural Research Council (BARC), Dhaka.

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