The Bangladesh Cold Storage Association has recently defended the approved potato storage charge set by the government. The association emphasized that its members have adhered to the fixed rate despite facing increased operational expenses. They have called for a revision of the tariff to ensure the sustainability of the sector.
During a press briefing held in Dhaka’s Purana Paltan, Mostofa Azad Chowdhury Babu, the president of the association, refuted claims that cold storage owners were overcharging farmers. He stated that no cold storage facility has exceeded the government-approved rate of Tk 6.75 per kilogram for potato storage.
The association highlighted that operating costs have surged in the past year. Factors contributing to this increase include an 18 percent rise in electricity tariffs for cold storage facilities since June 1, along with escalated labor costs, salaries, refrigerant gas prices, lubricants, and maintenance expenses.
Mostofa emphasized the need for the government to adjust the storage charge in line with the escalating operational costs. Failing to revise the tariff could lead to financial challenges for many cold storage operators in meeting electricity bills and loan repayments.
With Bangladesh producing approximately 1.12 crore tonnes of potatoes this year against a domestic demand of 90 lakh tonnes, and around 34 lakh tonnes stored in 351 cold storage facilities nationwide, the association highlighted the importance of maintaining fair pricing practices.
The association raised concerns about misinformation being spread by certain groups, causing confusion among farmers and policymakers. Mostofa assured that all stored potatoes this season were subject to agreements based on the government-approved charge.
According to the association’s cost analysis, a 10,000-tonne cold storage facility incurs significant expenses, with bank loan repayments and interest alone amounting to Tk 5.86 per kg. When factoring in rising electricity costs of about Tk 1.25 per kg, the total cost surpasses the approved storage charge.
Mostofa warned that if cold storage operators face financial difficulties and fail to pay electricity bills, power connections to these facilities could be cut off, risking millions of tonnes of stored potatoes. Urging a prompt review of the storage charge, he suggested consultations with relevant ministries, financial experts, and stakeholders to determine a fair tariff.
Additionally, Mostofa proposed measures such as subsidized electricity for privately operated cold storages, concessional bank financing, increased export incentives for potatoes, and flexible loan repayment schedules to support the sector’s viability and ensure food security for the country.
