The government is considering increasing cash incentives on export of potatoes to 20 per cent from existing 10 per cent to help potato growers get fair price as now the price is lower than the production cost in domestic markets.
The agriculture ministry in an inter-ministerial meeting on Tuesday proposed to increase the cash incentive to the exporters, Anwar Faroque, additional secretary of the ministry, told The Daily Star yesterday.
The move comes when farmers are selling potato at Tk 6-7 a kg in the field level though its production cost is around Tk 10 a kg.
According to the ministry, potato production is estimated to be over 80 lakh tonnes this year, some 20 lakh tonnes more than the domestic demand in a year.
The capacity of cold storages is only about 22 lakh tonnes of potato that leads to a competition between the growers and traders in storing potatoes.
On March 13, five potato growers were injured in a clash between the farmers and a group of traders over storing potatoes in a cold storage in Lalmonirhat district.
The clash ensued when the cold storage employees were receiving potatoes from the traders, ignoring the farmers who were waiting in front of it for long.
Bangladesh Farmers’ Association (BFA) also staged demonstrations in the capital on Tuesday demanding an increase of cold storage capacity for vegetables produced in the country.
BFA President Morshed Ali said farmers work hard and invest for some profits, but due to lack of storage capacity they are being affected very badly, which is not good for the country.
Additional Secretary Faroque said it is not possible to build cold storages overnight.
“However, the agriculture ministry is seriously thinking of farmers’ interests.
So, we are encouraging potato exports at this time, even if it requires, we will give some cash incentives,” he said.
Potential markets for potato export are Singapore, Malaysia and Sri Lanka and export price could be some $200 a tonne, Faroque said.
“With the cash incentive, traders will be encouraged to export the crop and it will help increase potato price in the domestic market thereby helping the farmers,” he said.
The commerce ministry will now put forward the proposal to the finance ministry for approval, the high official said.
The proposal of increasing cash incentives has been placed before the commerce ministry in the meeting. Agriculture Minister Matia Chowdhury and Commerce Minister Faruk Khan and some officials concerned were present.
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