Potato Oversupply Triggers 61% Price Crash—Immediate Risk for Bangladesh Farmers

Wholesale potato prices dropped from Tk 25/kg in September to Tk 10–12/kg by late October 2025 in most major mandis, as cold storages dumped surplus stocks before the storage period ends. Farmers in Munshiganj and Joypurhat report record-low sales and rising storage rent, worsening outlook compared to last week. Government procurement of 50,000 tonnes was not executed in time.

Acreage rose by 13%, reaching over 5.2 lakh hectares. Output surged to a record 11.57 million tonnes, exceeding annual consumption by 2.5 million tonnes. Storage capacity could not absorb the surplus—12 lakh tonnes remain unsold. Favourable weather helped yields, but seed and fertilizer prices rose. More than 90% of potato farmers operate on a small scale and lack cold storage access. Many hold potatoes, waiting for price recovery, but face spoilage risk as storage contracts expire.

Retail potato demand remains stable, but consumers display price sensitivity below Tk 20/kg. Processors and traders limit purchases due to storage constraints and slow movement. Export demand is minimal; Bangladesh lacks new export deals for potatoes. Institutional demand is steady but insufficient to absorb the glut. Traders expect further price drops unless government steps in soon. Farmer sentiment is at its lowest since 2018.

lowest impact: Karwan Bazar, Dhaka, price, direct access to city demand | highest impact: Joypurhat, Joypurhat, price, farmers hold stock cannot sell | stable: Rajshahi, Rajshahi, price, steady retail demand supports slow sales

The government announced procurement of 50,000 tonnes and fixed a minimum cold storage price at Tk 22/kg in August 2025 but failed to enforce or implement these measures. No direct subsidies or compensation schemes have reached growers. Cold storage managers urge quick government intervention before stocks expire. Weather conditions are favourable for late potato cultivation, but fertilizer prices remain volatile due to international markets. Delayed government action increases farmers’ financial risk; processor shut-downs possible if prices drop further.