Cold storage facility owners are stepping up their calls for government support, seeking a 20 percent rebate on power tariffs and a 30 percent incentive on potato exports. The demands come as the industry grapples with rising operational costs and a need to boost export competitiveness, according to a recent report by The Financial Express.

Why Cold Storage Owners Are Asking for a Power Tariff Rebate

The electricity bill is one of the largest recurring expenses for cold storage operators, who must maintain constant low temperatures to preserve perishable goods. With energy prices climbing, a 20 percent rebate would provide significant financial relief and help keep storage costs stable for farmers and traders.

Industry insiders argue that reduced power costs would translate into lower storage charges for farmers, ultimately supporting the agricultural supply chain. Without such intervention, higher operational costs may force some facilities to pass on the burden to producers, affecting the entire food value chain.

The Push for a 30% Potato Export Incentive

In addition to power tariff relief, cold storage owners are urging the government to introduce a 30 percent incentive for potato exports. This measure is aimed at encouraging overseas sales, especially during periods of domestic oversupply when prices plummet and storage space becomes scarce.

Export incentives would make Bangladeshi potatoes more competitive in international markets, potentially opening new revenue streams for farmers and reducing post-harvest losses. The cold storage association believes that a robust export push could stabilize domestic prices and improve farmer incomes.

Challenges Facing the Cold Storage Industry

  • High energy costs: Continuous refrigeration demands substantial electricity, making tariffs a major cost driver.
  • Inadequate export infrastructure: Limited cold chain logistics at ports and border points hamper efficient potato exports.
  • Market volatility: Fluctuating potato prices often leave farmers and storage operators with uncertain returns.
  • Seasonal surplus: During bumper harvests, storage capacity is stretched, and export incentives could help clear surplus stock.

Government Response and Industry Outlook

So far, the government has not announced any formal decision on these demands. However, the cold storage owners remain hopeful that their proposals will be considered in upcoming policy reviews, especially given the sector's importance to food security and agricultural exports.

Industry analysts note that similar incentives have been successfully implemented in other agricultural sub-sectors, suggesting a precedent for government support. If approved, the power tariff rebate and export incentive could significantly bolster the cold storage industry's sustainability and contribute to national export growth.

Key Takeaways

  • Cold storage owners are requesting a 20% power tariff rebate to ease operational costs.
  • They are also seeking a 30% potato export incentive to boost overseas shipments.
  • The measures aim to reduce storage costs, stabilize prices, and improve farmer livelihoods.
  • Government approval could enhance the competitiveness of Bangladeshi potatoes in global markets.

As the cold storage industry awaits a response, stakeholders emphasize that timely action is critical to address the challenges of rising energy prices and market fluctuations. A supportive policy framework could unlock new opportunities for agricultural exporters and strengthen the overall economy.