Potato cultivation is a significant sub-sector of Bangladesh's agricultural economy. Regarding cultivable land and overall production, potatoes rank second only to rice. Approximately 458,000 hectares of land are dedicated to potato farming, yielding an annual production of nearly 10.965 million metric tons, with an average yield of 23.91 tons per hectare (BBS & DAE, 2023-2024). In 2025, the area under cultivation has increased substantially to 521,000 hectares, reflecting over 13% rise from the previous year.
According to the Bangladesh Cold Storage Association (BCSA), potato production has reached 12 million metric tons in 2025. In contrast, the Bangladesh Bureau of Statistics (BBS) offers a more conservative estimate of 10.6 million metric tons. Both figures significantly exceed the nation's annual domestic demand of 9 million metric tons.
Despite the increased cultivated land, productivity has declined while per-unit production costs have risen. Analysis indicates that due to high market prices in 2024, many farmers expanded potato cultivation in 2025, anticipating greater profits. The surge in cultivation led to a shortage of high-quality seeds, compelling farmers to purchase available seeds at prices ranging from BDT 100 to 150 per kilogram, in contrast to a maximum of BDT 50 per kilogram in the previous season, according to the Deputy Director of the Bangladesh Agricultural Development Corporation (BADC) in Moulvibazar. Owing to the shortage of certified potato seeds, farmers were compelled to procure seeds from unauthorized sources, many of which were infected with diseases and exhibited significantly reduced productivity despite the higher cost of these seeds.
In addition, rising fertilizer and labor costs have further inflated overall production expenses. According to BCSA, the cost of producing one kilogram of potatoes ranges between BDT 18 and 20, whereas market prices have fallen to BDT 12 to 16, resulting in financial losses for farmers. Key contributing factors include limited buyer availability, lack of modern preservation techniques, and insufficient cold storage infrastructure.
As a short-term measure, the government could consider setting a minimum support price to ensure fair compensation for potato growers. However, structural reform in agricultural management is imperative for sustainable and long-lasting solutions. However,contract farming emerges as a promising and sustainable model. Nevertheless, such arrangements must be based on long-term agreements involving the government, farmers, and the private sector in a tripartite collaboration.
Government institutions like the Statistical Wing of the Agricultural Research Institution and the Department of Agricultural Marketing (DAM) must play a vital role in preventing the overproduction of potatoes by forecasting the demand and supply accurately at the beginning of the cultivation session. Besides reducing the overproduction, DAE must disseminate the necessary, and relevant market information to farmers. Government institutions should also arrange training programs on short-term (2-3 months) potato storage techniques, utilizing local methods to preserve the potato for up to three months. Such initiatives could help farmers in reducing post-harvest losses.
Besides the government institution, it is essential to increase the involvement of the private sector in the modern agricultural system for the sustainable development of the agricultural sector in Bangladesh. Through contract farming, the private sector can significantly enhance the stability and profitability of potato cultivation. As per the contract, farmers might get high-quality seeds, fertilizers, pesticides, and even some technical support, including training that will increase the quality and productivity of the potatoes and overall agricultural efficiency.
Apart from meeting local demand, private firms can boost production aimed at export markets by providing farmers with necessary training aligned with international standards while at the same time allowing access to grading and packaging technologies and relevant information on global market conditions. This approach could place potatoes among the main export crops.
Further, private investment in cold storage facilities - either mobile units or decentralized rural-based structure can reduce post-harvest losses and allow farmers to hold on to their produce until market conditions become favourable. This approach maintains a consistent income and limits wastage.
The private sector can reach more people through access to financial services using digital marketing and farming technology. New concepts such as blockchain for product tracing, phone applications that bring buyers and farmers together, and digital payment systems have the potential to make the supply chain more transparent and efficient.
Finally, an integrated approach that blends private initiative, new technology, and institutional support will be vital for the longer-term sustainability of agriculture and the finances of Bangladeshi potato farmers.
Mahfuzur Rahman, PhD candidate, Kagoshima University, Japan and Dr. Md. Mizanur Rahman, Associate Professor, BRAC Business School
