Potato prices may rise above Tk50/kg this year: Cold Storage Association

Consumers might have to buy potatoes for over Tk50 per kg this year due to low production, said the Bangladesh Cold Storage Association.

"Last year potatoes that were stored in cold storage were bought for Tk8-12 per kg. The potatoes that are being stored this time are bought for Tk25-30 per kg from farmers. The prices will be much higher when these potatoes hit the market," said Bangladesh Cold Storage Association President Mostafa Azad Chowdhury during a "meet the press" organised by the association along with Saver International Limited at Paltan in the capital On Thursday (28 March).

He said due to the effects of climate change, natural calamities and diseases, the production of potatoes has decreased by at least 20% this year. At the same time due to the financial crisis and market volatility, the farmers harvested at least 30% of the potatoes early and sold them in the market as they were getting good prices, Mostafa said.

Cold storages in Munshiganj have stored 30% less potatoes this year, and places like Thakurgaon and Rangpur have stored 10-20% less potatoes, he said.

"These factors will ultimately result in higher potato prices," he warned.

Entrepreneurs demand low-interest capital to invest in cold storage

Currently, there are more than 400 cold storage in the country where potatoes are stored. But to ensure the country's food security, entrepreneurs said they want to make new investments in cold storage to store various products including onions, tomatoes, carrots, meat, and dates.

They said the sector needs low-interest capital from the government.

The Cold Storage Association president said, "At present, the interest rate on bank loans is 13-14%. If we project with high-interest loans, it will be difficult to make it profitable. For this reason, if the government gives us a loan at 3-4% interest through Bangladesh Bank, or by taking funds from abroad, then we can invest in this sector."

He further said, "There are four chambers in each cold storage of the country. For those that are doing business poorly, one or two chambers may be used specifically for storing onions or other perishable produce. For this, we need low-interest capital support from the government."

The Bangladesh Cold Storage Association and Saver International Limited are organising a three-day exhibition starting on 16 May at ICCB in Bashundhara highlighting the role of cold storage in the supply chain. It will have exhibitions on various technologies of cold storage.