Bangladesh fast-tracks potato import as prices spiral

The government has fast-tracked the process of approving imports of potato as the price of one of the cheapest kitchen staples in Bangladesh continues to spiral.

The agriculture ministry cleared the commerce ministry recommendation to import potatoes on the same day on Monday in a rare move.

The issuance of Import Policy Orders or IPOs will start on Monday, Agriculture Minister Muhammad Abdur Razzaque told reporters at the Secretariat.

Potato prices have nearly doubled one and a half months after the government set the maximum retail price of the root vegetable at Tk 36 per kg.

“The decision has been taken to increase the supply of the product in the market and to keep the price stable considering the current situation,” the commerce ministry said in a statement on Monday.

“Interested importers of the product are requested to submit applications to the ministry.”

Good quality potatoes are currently being sold at Tk 60 per kg, the highest in the country’s recent history. The highest potato price in the past decade was Tk 35 per kg. The price remains around Tk 30 throughout the year and sometimes falls below Tk 10.

Razzaque said the potato price hike is unjustifiable when Bangladesh is thinking about exporting the product.

He suspects a syndicate of cold storage owners may be manipulating the potato market.

Potato prices have spiked sharply in the last two days amid a supply crunch because of violent opposition protests. Consumers fear the prices may go further up as the protests are expected to continue throughout the week.

After clashes during BNP's rally in Dhaka on Saturday, the party called a general strike for Sunday and then a three-day blockade starting on Tuesday.

In this situation, potatoes were sold at Tk 70 per kg in some parts of the capital.

The government previously approved the import of eggs in September to stabilise the market. The import process has started, but the measure has had little impact on the market.