Potato exports from Bangladesh have increased fourfold in the current fiscal year, reaching 50,000 tons between July and April, up from 12,300 tons in FY 2024. This increase is linked to robust domestic production and rising demand in Asian markets. The Bangladesh Potato Exporters Association anticipates exports will surpass 70,000 tons by the season's end.
Arif Azad, a vegetable exporter, noted that the export surge is largely due to strong domestic yields and a reduction in local market prices compared to production costs. "Exporters are sourcing quality potatoes from Rangpur and Munshiganj for $0.36 per kg, down from $0.72-$0.81 last year." Retail prices have dropped to $0.18-$0.27 per kg nationwide, the lowest in three years, according to the Department of Agricultural Marketing (DAM).
Azad explained that increasing global demand, new potato varieties, and slightly reduced cargo fares have further supported export growth. Regional tensions have redirected export orders from India and Pakistan to Bangladesh, offering a strategic advantage. Md Sabbir of Sana Trading stated, "Importing countries are experiencing high demand for potatoes this year. Shipping costs have dropped, with potatoes being exported at $300 per tonne. The high dollar exchange rate is also encouraging exporters."
Sabbir estimates an additional 20,000 tons of potatoes will be exported this season, with shipments to Malaysia expected to continue for another month and to Nepal until July. The 'Sunshine' variety, produced by the Bangladesh Agricultural Development Corporation (BADC), has gained popularity in export markets due to its size and color.
An official from the Plant Quarantine Wing of the Agriculture Ministry mentioned that the government has arranged BRTC trucks to transport potatoes to ports, reducing logistics costs from $360 to $225, benefiting exporters.
According to the Export Promotion Bureau (EPB), Bangladeshi potatoes are shipped to 14 countries, with Malaysia accounting for about 80% of total shipments. Other destinations include Singapore, Nepal, Sri Lanka, and some Middle Eastern countries. While Russia was once a major market, exports there have declined.
EPB data indicate that potato export earnings peaked in FY 2014 at over $33 million (0.106 million tons). Since then, exports decreased until the recent recovery. Bangladesh ranks as the world's seventh-largest potato producer. Last year, the country imported potatoes due to a domestic shortfall, with local prices soaring to $0.63-$0.81 per kg, prompting scrutiny of official production figures.
The government reported 10.9 million tons, while the Bangladesh Cold Storage Association claimed 8.8 million tons. This year, the government projects an all-time high output of 11 million tons, according to Saiful Islam, director general of the Department of Agricultural Extension (DAE).
Source: Financial Express