The government has approved Tk 260 crore in support for over 20 lakh potato farmers, cancelling its plan to procure 50,000 tonnes through TCB. An additional Tk 110 crore will be sent directly to growers via mobile accounts to offset losses as production exceeds demand and market prices fall below the cost.
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The government has finalised a major policy shift in its potato market intervention strategy, opting to deliver Tk260 crore in total subsidiesdirectly to potato growers across Bangladesh instead of purchasing potatoes through the Trading Corporation of Bangladesh (TCB).
This includes an additional Tk110 crore in fresh support, on top of the Tk150 crore allocated in the FY2025–26 budget, aimed at protecting farmers amid unusually low market prices this year.
The decision was taken on 6 Novemberduring a high-level meeting held at the Ministry of Agriculture to assess the current potato market distortion, production cost escalation, and potential impact on next year’s cultivation.
Potato prices plunged to Tk13–14 per kgduring July and August—far below the national average production and storage cost of Tk20–25 per kg.
This led to fears that farmers would incur heavy losses and might reduce cultivation acreage in the coming season.
Initially, the government planned to procure 50,000 tonnes of potatoesat Tk22 per kgand distribute them through TCB at subsidised rates to stabilise the market.
The Economic Affairs Committee had approved the purchase in August, and potatoes were scheduled for market release during October–November.
However, during policy discussions, TCB Chairman Brigadier General Mohammad Faisal Azadpointed out several structural challenges:
He argued that if the entire Tk110 crore is provided directly to farmers, the benefit would be clearer, faster, and more equitable.
Senior officials—including Agriculture Secretary Mohammad Emdad Ullah Mianand Commerce Secretary Mahbubur Rahman—endorsed the proposal, resulting in a full cancellation of the procurement programme.
For the first time, potato growers will receive direct cash support through mobile financial services (MFS).
The Department of Agricultural Extension (DAE), following ministry directives, has created a nationwide verified databasecontaining:
The additional Tk110 crore subsidy will be calculated based on:
Existing incentives under the budget will continue delivering subsidised seed and fertiliser, while the new measure introduces a hybrid support modelcombining cash + existing input subsidies.
A senior official confirmed that the ministry has already written to the Finance Divisionseeking immediate fund release for disbursement.
According to ministry data, Bangladesh’s annual demand for potatoes—covering household consumption, chips, crisps, and other industrial uses—is around 104 lakh tonnes.
In FY2024–25, total production reached 115 lakh tonnes, creating a surplus of over 11 lakh tonnes.
This surplus directly contributed to the atypical price crash observed in mid-2025.
Breakdown of potato cost this year:
As of 31 October, cold storages across the country held:
Farmers also retain a share of the stock at home.
New-season potatoes will begin entering markets in January, with full-scale supply expected by February.
Officials believe the direct-cash model ensures:
Commerce Secretary Mahbubur Rahman remarked that if subsidies reach farmers directly, “the true growers will benefit instead of intermediaries,” making this approach more effective in offsetting their losses.
The review committee—comprising the agriculture, finance, commerce, and food secretaries—has approved the model as a more sustainable market intervention method.
The ministry fears that unless farmers are compensated for this year’s losses, many may cut down acreage next season, which could lead to market instability in 2026.
The Tk260 crore package is therefore expected to act as both immediate reliefand a strategic incentiveto maintain stable production levels.
With verified data on over 20 lakh growers and a fully digital disbursement process, the government aims to set a “transparent, accountable and farmer-centric” model for future agricultural support programmes.
