1. Weekly News

Bangladesh

Bangladesh Expanded Potato Acreage in the 2024/25 Season

In Bangladesh, potato cultivation has reached a record 521 thousand hectares (ha) in 2024/25, driven by favorable conditions and expanded acreage. However, farmers face significant financial challenges due to falling prices and rising production costs. Retail prices in Dhaka have declined, ranging from USD 0.27 to USD 0.46 per kilogram (kg), while producer prices in northern districts have plunged to a range of USD 0.11 to USD 0.18/kg, well below production costs estimated at USD 0.13 to USD 0.14/kg.

Moreover, only 3% of the crop has been harvested as of W2, raising fears of further price declines as supply increases. Farmers are also burdened by higher seed prices, fertilizer shortages, delayed planting due to unexpected rainfall, and increased cold storage fees of USD 0.07/kg. Despite expectations of higher overall production, the sharp price drops and escalating costs have placed farmers in a precarious financial position.

India

Sharp Rise in Potato Prices Leaves Residents Worried

India's potato prices surged sharply in city markets on January 6, increasing pressure on household budgets and making this essential kitchen staple more expensive. Vendors are now selling potatoes at USD 0.46/kg , significantly higher than USD 0.35 to 0.38/kg the previous week. The sudden price hike has left residents concerned about its impact.

Costa Rica

Costa Rica Faces Skyrocketing Potato Prices Due to Storm-Induced Crop Losses

Costa Rican consumers face challenges with soaring prices of essential vegetables, notably potatoes, which have seen sharp increases following the devastating impact of Hurricane Rafael and Tropical Storm Sara in late 2024. According to the National Production Council (CNP), potato prices have surged to over USD 4.30/kg, a staggering 279% year-on-year (YoY) increase in W2. The Minister of Agriculture cited crop losses exceeding USD 64 million due to the storms, which caused widespread damage. In addition to potatoes, other vegetables such as onions, chayote, and peppers have suffered from diseases, pests, and reduced productivity, exacerbating the strain on household budgets.

2. Weekly Pricing

Weekly Potato Pricing Important Exporters (USD/kg)

Yearly Change in Potato Pricing Important Exporters (W2 2024 to W2 2025)

France

In W2, wholesale potato prices in France remained steady week-on-week (WoW) at USD 0.36/kg but experienced an 11.90% YoY decrease. This decline is primarily due to a significant increase in production. In 2024, France's potato harvest reached 7.6 million metric tons (mmt), marking a substantial rise of over 16% compared to the average of the previous five years. The expansion in production was driven by a 7% increase in the area dedicated to storage potatoes, reflecting years of development work and opening new perspectives for producers. Despite the increased production, French potato exports continued their positive momentum. In Oct-24, export volumes rose by 15% compared to Oct-23, totaling over 236 thousand metric tons (mt). However, the value increase was more modest at 7%, indicating that higher supply may have exerted downward pressure on prices.

Netherlands

In W2, wholesale potato prices in the Netherlands remained steady WoW at USD 0.26/kg but decreased by 12.02% YoY. This decline is primarily due to a significant increase in production, with the 2024 harvest reaching 7.6 mmt, a substantial rise of over 16% compared to the average of the previous five years. The production expansion was driven by a 7% increase in the area dedicated to storage potatoes, reflecting years of development work and opening new perspectives for producers.

Germany

In W2, German wholesale potato prices saw a significant decrease of 15.46% YoY, dropping to USD 0.22/kg, as the ongoing harvest has pushed prices downward. This drop is due to an exceptionally good harvest in 2024/25, with preliminary figures indicating record levels. The Federal Ministry of Food and Agriculture expects Germany to produce around 12.7 mmt, a 9% YoY increase and 17% above the multi-year average, thanks to a 9% YoY expansion in cultivated areas. Although warm, humid weather and heavy rainfall have caused challenges like blight for farmers, the quality of the potatoes remains good. Potatoes are considered the fourth most important staple food globally, following rice, wheat, and corn, with China leading production. In Germany, Lower Saxony dominates with a 45.5% share of the cultivated area.

Pakistan

In W2, potato prices in Pakistan decreased by 24.14% WoW and 26.67% MoM to USD 0.22/kg. This significant price drop is primarily due to an abundant supply resulting from a substantial increase in potato production. Pakistan has risen to the global top ten in potato production, with over 8 mmt produced in 2024 due to increased cultivation area and enhanced farming practices. However, recent adverse weather conditions, including smog and fog in Punjab province, are projected to cause a 20% reduction in per-acre yield for the 2025 potato crop. Despite this anticipated decrease, the current market is experiencing a surplus from previous harvests, leading to the observed price decline.

Egypt

In W2, Egypt's wholesale potato prices increased 13.33% WoW and MoM, reaching USD 0.17/kg. This price rise is primarily due to reduced supply as the Nile season's harvest concludes, leading to decreased market availability. Moreover, increased export demand has contributed to the upward pressure on prices. Egypt, ranking among the top global exporters of potatoes, has seen a surge in international demand, particularly from countries facing adverse climate conditions affecting their local potato production. Furthermore, the start of the new planting season in Sept-24, with harvests expected by mid-Jan-25, has led to a transitional period where old stocks are depleted, and new produce is not yet fully available in the market. This gap between supply cycles often results in temporary price increases.

3. Actionable Recommendations

Introduce Price Hedging Mechanisms

In Pakistan, where potato production has surged and prices have recently fallen due to oversupply, implementing price hedging mechanisms can provide farmers with a crucial tool to mitigate market risks. By introducing forward contracts, futures markets, and options, farmers can lock in better selling prices ahead of harvests, protecting them from sharp price declines. Financial institutions and agricultural cooperatives could offer training sessions to educate farmers on using these tools effectively. This would allow potato producers in Punjab and Sindh to stabilize their incomes and manage financial uncertainty, especially during market volatility.

Enhance Cold Storage Infrastructure

In Egypt, where potato prices have recently risen due to reduced supply as the harvest season concludes, expanding cold storage facilities can play a critical role in stabilizing the market. Farmers and cooperatives can store their produce for extended periods, allowing for better market timing. This infrastructure would enable the efficient handling of seasonal fluctuations, reducing post-harvest losses and ensuring smoother availability of potatoes in the local market. Government agencies, alongside private sector partners, could focus on improving storage capacity in key potato-producing areas, such as the Nile Delta, to stabilize prices and enhance farmers' profitability.

Support for Climate-Resilient Practices

Bangladesh should provide farmers with drought-tolerant and flood-resistant potato varieties to mitigate the impact of unpredictable weather patterns. Farmers in regions like Rangpur and Rajshahi could benefit from workshops and financial incentives to adopt these climate-smart practices. By investing in seed banks, offering access to affordable resilient seeds, and improving irrigation systems, the country can ensure more stable yields, reduce losses, and improve the overall resilience of potato cultivation against climate-related challenges.

Sources: Tridge, Americanexpress, Brecorder, Fresh Plaza, Times of India