Surplus Potatoes in Bangladesh Weigh Heavily on Farmers as Processing Industry Struggles to Catch Up

Potatoes are a staple food for people in many countries. But they are primarily known as a vegetable in Bangladesh. Last season, nearly 3 million tons of potatoes produced in the country remained surplus and were stored in cold storage facilities. Farmers are now losing BDT 10-15 per kilogram on these potatoes. Experts say that if the increased production were paired with diversified uses of potatoes, farmers could have benefited.

Globally, potatoes are being increasingly used in industries producing chips, biscuits, starch, bioplastics, and medical products. In Bangladesh, however, industrial use of potatoes has not yet developed significantly. As a result, the surplus has become a burden for farmers. Experts note that the domestic potato supply often exceeds demand, causing prices to drop during the production season, which harms farmers financially.

According to the Department of Agricultural Extension (DAE), potatoes were cultivated on 494,900 hectares in FY 2024–25, producing over 11.57 million tons. Other government sources estimate the country’s annual potato demand at around 8 million tons, with an additional 0.8 to 1 million tons needed for seed purposes. This left a surplus of 2.5 to 3 million tons from last season, which is stored in various cold storage facilities.

The Department of Agricultural Marketing (DAM) reports that there are 384 cold storage facilities across the country, with a combined capacity of over 3.27 million tons. Under the department’s “Multipurpose Use of Potato, Storage, & Marketing Development” project, 539 non-refrigerated model storage units were established at the farmer level across 13 districts. Together, these cold and non-refrigerated facilities can store over 3.28 million tons of potatoes. Last season, 3.15 million tons were stored in cold storage, including 1.02 million tons of seed potatoes. This large stockpile has become a headache for farmers, who are losing BDT 10-15 per kilogram on these potatoes.

According to DAM, farmers’ production cost last season for potatoes was BDT 14-15 per kilogram, rising to about BDT 17 in private estimates. Adding cold storage rent, transportation, and labor costs, the total expense per kilogram approaches BDT 25. With current market prices, farmers are losing BDT 10-15 per kilogram.

Potatoes are used beyond vegetables in Bangladesh — mainly for chips, biscuits, fries, and animal feed. However, these industries remain small compared with total production.

A study by the Chinese Academy of Agricultural Sciences found that the United States processes 64.46 percent of its potato production, largely for frozen French fries and fast-food industry demand. Canada processes 68 percent, Germany 70–80 percent, Belgium 80 percent, China 15 percent, and neighboring India about 7 percent. By contrast, in Bangladesh, only 3 to 4 percent of total potato production is used beyond vegetables, according to industry sources.

Statista data shows that the global market for processed potatoes was valued at USD 31 billion in 2019 and is projected to reach USD 51 billion by 2030. In the domestic market, Pran-RFL Group markets various types of chips and potato biscuits. 

Kamruzzaman Kamal, Director of Marketing at Pran-RFL Group:

"Pran-RFL Group requires around 20,000 tons of potatoes annually to produce processed food such as chips and biscuits. About 3 to 4 percent of national production is converted into processed foods. The rest is consumed as vegetables. The processed potato food market in Bangladesh is growing gradually."

"Potato varieties in Bangladesh are a major challenge. Not every variety is suitable for all processed products. Proper management and storage are also issues. The way farmers store potatoes is not always ideal, and the quality often deteriorates."

Dr. Md Mosharraf Hossain Molla, Principal Scientific Officer at the Tuber Crops Research Centre, Bangladesh Agricultural Research Institute (BARI) :

"Our annual potato demand is around 7 to 8 million tons. Potatoes are primarily consumed as a vegetable in Bangladesh. They are also used in chips, biscuits, French fries, and other products, but that use is comparatively very small. Farmers are suffering because a large portion of last season’s production remains as surplus. To address this issue, we need to diversify dietary habits."

"Producing it in Bangladesh is expensive. That’s because local potatoes have low dry matter and high moisture content. That makes commercial starch production costly. Detailed research is needed to make it profitable."

Agricultural economists say expanding the industrial use of potatoes requires support in production, marketing, processing, storage, and export, including loans and, in some cases, subsidies. Increased usage would encourage farmers to produce more and benefit financially.

Dr. Jahangir Alam, an agricultural economist:

"Potatoes do not have multiple uses in Bangladesh. As a result, surplus potatoes create a recurring problem. Less than 1 percent of total production is exported. So farmers face losses nearly every season."

"Globally, trade in potato starch and flakes is growing at about 10 percent annually. Industrial use of these products is increasing worldwide. That requires investment and initiatives from both the public and private sectors. Farmers need training on how to store potatoes properly according to demand."