Cold storage brokers, agents destabilise potato market

Despite government efforts to stabilise the market, the volatile potato pricing remains unchecked, as agents, brokers, and hoarders continue to manipulate prices to their advantage.

Experts have termed the government's actions as merely symbolic, stating that the persistent business syndicates deliberately hike the prices every year.

The price surge has been particularly notable as it happens at a time when consumers are already grappling with rising costs of vegetables, fish, and meat.

On September 14, the government had fixed the retail price of potatoes at Tk 35-36 per kg and Tk 26-27 per kg at the cold storage level. Nevertheless, traders defied this, selling at Tk 36-39 per kg wholesale and Tk 45-50 at retail.

Agriculture economist Dr Jahangir Alam Khan said that the demand for potatoes and eggs has significantly increased, particularly among lower-income groups who are already struggling with higher food prices.

He suggested that the government procure between five to ten lakh tonnes of potatoes and introduce open market sales to counter the influence of market manipulators.

The DNCRP's market monitoring drive is largely symbolic and cannot actually intervene in the market, which is why it has failed to bring down prices, he said.

Directorate General of National Consumer Protection (DNCRP) found evidence of market destabilisation through high potato prices, illegal stockpiling, and manipulation during their market monitoring drives.

"We have evidence against agent, broker and hoarding syndicates centred around cold storage for destabilising the potato market," said AHM Shafiquzzaman, Director General of DNCRP.

"During our market monitoring drives across Munshiganj, Bogura, Nilphamari, and Rangpur, we apprehended brokers and agents, forwarding them to local police," said AHM Shafiquzzaman, Director General of DNCRP.

He also added that the local administration has initiated legal proceedings under the anti-hoarding act.

At Shibganj upazila in Bogura, Jahid Hasan, a broker from R & R Cold Storage, was detained by DNCRP officials.

He disclosed that he had bought potatoes at Tk 13 per kg during the harvest season, adding that cold storage costs amount to Tk 5 per kg. With transportation and other costs included, he suggested that he could still make a profit by selling the potatoes at Tk 22 per kg.

Despite this, Jahid Hasan sold 245 sacks of potatoes at Tk 36-37 per kg on September 18, even though he confirmed that his storage costs had not increased in the last five months.

In further action against market manipulators, DNCRP sent Ripon, Shah Alam, and Zahid—brokers affiliated with R&R Potato Cold Storage—to the police for illegal stockpiling, market manipulation, and selling potatoes at high prices.

During another monitoring drive, the DNCRP team, led by the Director General, apprehended two other brokers and hoarders: Rezaul Karim, manager of Arman Cold Storage, and Md. Russel. Both were forwarded to the police on charges of market destabilisation.

At a DNCRP seminar in Rangpur, Obaidur Rahman Mondal, Deputy Director of the Department of Agriculture Extension (DAE), stated that the average cost of potato production in the Rangpur division is around Tk 8.77 per kilogram.

He emphasized that farmers are forced to sell their produce for as low as Tk 8 to 10 per kg, making the prevailing retail price of Tk 50 per kg entirely unjustifiable.

The Department of Agriculture Extension said the potato production was at 11.19 million tonnes, though the Bangladesh Bureau of Statistics suggests a slightly lower figure of 10.4 million tonnes.

Regardless, with a demand of only 9 million tonnes in the country, the sharp rise in potato prices appears unjustifiable, leading to a growing sense of public discontent.