Cash incentives for potato export under study

FE Report

The government is considering raising cash incentives for potato export to help growers get fair price amidst bumper production, officials said.

Production of potato has been estimated at 8.0 tonnes against the government's target of 7.2 tonnes, they said hinting that the growers were now selling their produce much below their production cost.

The officials said the commerce ministry endorsed, in principle, the demand on increasing cash incentive upon request from the Bangladesh cold storage association (BCSA).

The BCSA representatives, led by its chairman Mohammad Jasim Uddin, met commerce secretary Mohammad Golam Mostafa and briefed him about the market situation to get the approval.

The ministry will soon finalise the decision after getting approval from the finance ministry, said an official after the meeting.

The BCSA chairman said potato export is needed to promote cultivation and help the growers get fair price.

"We have been able to convince the ministry on the legitimacy of the demand considering the interest of the potato growers," the chairman told the FE.

He said there is a scope to export 1.0 million metric tonnes of potato to Malaysia, Singapore, Sri Lanka, Thailand and Dubai out of this year's production.

When asked about the local demand, Mr. Jasim said, the export quantity is very negligible and would not affect the local demand.

"The price of potato must be at least Tk 15 per kg to help the growers get minimum profit," he claimed requesting the government cooperate in setting up potato-based industries.

The potato exporters are now enjoying 10 per cent cash incentive against their export. In the retail kitchen market, price of potato are being sold between Tk 12 and 15 per kg.

This year, the government brought 4.40 hectares of land under potato cultivation against its target 4.25 hectares of land.