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AyRojgar
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What went wrongPotato traders in Sadullapur, Gaibandha, in a Samakal report

A 6-8 taka loss on every kilo, and 95,000 sacks still sitting in store

Potatoes stored in the hope of a rise cost 18-19 taka a kg all-in while the market fell to 11-12. Of 125,000 sacks stored, about 95,000 were still unsold.

Traders in Sadullapur, Gaibandha, bought potatoes and put them into cold storage expecting prices to rise. Purchase price plus storage left them in at 18-19 taka per kg, but the market fell to 11-12, a loss of 6-8 taka on every kilo. Of 125,000 sacks stored for the 2025-26 season, about 95,000 were still unsold - at 65 kg a sack, roughly 6,175 tonnes. Retail was running at 16-18 taka, and the farm production cost had been 10-12 taka per kg. One of the traders said a business cannot be kept alive on losses like these. Every further month in store only adds rent to stock already worth less than it cost.

Lessons

  1. 1.Cold storage does not remove price risk, it adds rent to it: the longer you hold, the higher your break-even
  2. 2.Work out the price you must beat: at 18-19 taka all-in, a market at 11-12 is a loss to cut, not a dip to wait out

Published with the person's permission, without revealing who they are.

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