Potato farmers fume over Tk 8 per kg cold storage fee
The Bangladesh Cold Storage Association has raised the rent for storing potatoes in cold storage by Tk 1 per kilogram, bringing it to Tk 8 per kg. Additionally, the association has imposed a new rule: only up to 50 kg of potatoes can now be stored per sack, with costs calculated strictly by weight instead of per sack. This move has sparked outrage among farmers, who argue that the rent hike is unjustified and will severely impact their livelihoods.
The impact on farmers
For years, potato prices in Bangladesh have fluctuated unpredictably. With the rise in cold storage rent, retail potato prices are also expected to increase, ultimately burdening consumers. Traders and farmers claim their storage costs have nearly doubled due to the changes. While cold storage owners haven’t explicitly increased operational costs, they appear to have leveraged this year’s higher production levels to form syndicates and raise rents. If the issue isn’t resolved, farmers may be forced to sell their produce at lower prices immediately, leading to significant financial losses.
Cold Storage Association President Mustafa Azad Chowdhury claimed that the rent increase amounts to just Tk 1 per kg, bringing it from Tk 7 last year to Tk 8 this year. However, farmers feel the effective cost has doubled because earlier, they paid a flat rate of Tk 350 per sack (which could hold 60-80 kg of potatoes) without additional charges for excess weight. Now, every kilogram above 50 kg incurs an extra charge, making the perceived cost significantly higher.
Farmer reactions
District Potato Traders Association President Nurul Islam criticised the decision, saying, "After several years, potato production has been excellent this season, and prices have stabilised. Yet, the Cold Storage Association has arbitrarily raised rents from Tk 4 to TK 8 per kg, exploiting farmers. This is unacceptable." He accused cold storage owners of forming cartels based on favourable production forecasts to impose unreasonable rates.
Enamul Haque, a potato farmer from Munshiganj—one of Bangladesh’s key potato-growing regions alongside Joypurhat and Rangpur—expressed concern over the implications of the rent hike. "If this continues, farmers will face ruin," he warned. "Without access to affordable cold storage, we’ll be compelled to sell our produce at rock-bottom prices, leaving many destitute."
Booking process and costs
Farmers explained that last year, the "paid booking" fee for storing potatoes in cold storage was Tk 210-220 per sack, while the "loose booking" fee was around Tk 285. Government regulations allow storage of up to 50 kg per sack, though farmers traditionally stored more without incurring extra charges. Paid bookings require prepayment one year before harvest, whereas loose booking fees are settled upon retrieval of the potatoes. Historically, the average cost per kg was approximately 5 TK, which has steadily climbed to TK 8 this year.
Protests emerge
In protest against the rising rents, farmers organised demonstrations across various districts. On Sunday, a protest programme took place at the Mohanpur Upazila Parishad premises in Rajshahi, where participants threw potatoes onto the Rajshahi-Naogaon highway in Mohanpur Upazila Sadar. Some even lay down on the road to draw attention to their plight.
Version from cold storage owners
Mustafa Azad Chowdhury defended the decision, saying, "We haven’t arbitrarily raised rents; rather, the industry faces rising operational costs. For instance, we pay commercial electricity rates Tk 12 per unit despite being part of the agricultural sector. Moreover, storing sacks exceeding 50 kg violates labour laws that results in litigation and reduces cold storage capacity."
He added, "This movement is driven by individuals who profited during previous years when potato storage was less regulated. They’re misleading farmers into joining protests." Despite these claims, farmers insist there has been no substantial increase in costs such as electricity bills or other expenses to justify the rent hike.
Context of potato production
According to the Agriculture Department, this year’s potato production target stands at 1.13 crore tonnes on 4.67 lakh hectares of land. So far, about 12% of fields have been harvested, with indications that the target might be surpassed thanks to high yields. Currently, there are 350 operational cold storage facilities nationwide, capable of holding roughly 3 million tonnes of potatoes—about a quarter of total production. During peak seasons, these facilities are typically filled to capacity.
Trends in rent increases
Since 2021, the cost of storing potatoes in cold storage has incrementally risen:
2021: Tk 5 per kg
2022: Tk 5.5 per kg
2023: Tk 6 per kg
2024: Tk 7 per kg
2025: Tk 8 per kg
Cold storage owners attribute the annual increases to rising operational costs, including high-interest bank loans and unfavourable electricity tariffs. However, farmers dispute these claims, arguing that no significant cost escalations justify the current hike.
A brewing conflict
As tensions mount, farmers warn of dire consequences if their demands aren’t addressed. With no immediate resolution in sight, the standoff highlights the broader challenges faced by the agricultural sector, particularly in balancing the interests of growers and storage providers. Both sides must find common ground to prevent further disruptions in the potato market and protect the livelihoods of thousands of small-scale farmers.
