The cold storage industry is sounding the alarm as rising operational costs and falling margins push the sector to the brink. Owners are now demanding urgent government intervention, including a 20% rebate on electricity bills and a 30% incentive on potato exports, to prevent widespread losses and potential shutdowns.

Why Cold Storage Owners Are Pushing for Relief

Cold storage facilities are essential for preserving perishable goods like potatoes, but they have been hit hard by soaring energy prices and market volatility. The sector, which relies heavily on continuous power supply, has seen its profitability erode sharply, prompting collective calls for policy support.

According to industry representatives, the current crisis is not just about high input costs but also about unfair market dynamics. Farmers and traders are struggling to get fair prices, and the storage operators are caught in the middle, bearing the brunt of inefficiencies across the supply chain.

The Core Demands: Power Rebate and Export Incentive

Owners have formally requested a 20% rebate on electricity bills, arguing that power constitutes a significant portion of their monthly expenses. They also seek a 30% incentive on potato exports to boost overseas shipments, which would help clear excess inventory and stabilize domestic prices.

  • Immediate reduction in electricity tariffs for cold storage facilities
  • Financial support for exporters to make Bangladeshi potatoes competitive globally
  • Policy measures to ensure fair pricing for stored produce

Sector Crisis: Rising Costs and Falling Returns

The crisis stems from a combination of factors: rising fuel prices, increased maintenance costs, and a glut in potato production that has depressed market rates. Many cold storage owners report that they are operating at a loss, with some considering shutting down operations if relief does not come soon.

Storage fees charged to farmers have not kept pace with inflation, making it difficult for owners to cover their overheads. This has led to a tense standoff between storage operators and farmers, who are equally affected by the downturn.

Impact on Farmers and the Potato Supply Chain

Potato farmers are equally anxious, as they rely on cold storage to extend the shelf life of their harvest. If storage facilities close, farmers would be forced to sell at rock-bottom prices immediately after harvest, leading to massive income losses.

The proposed export incentive is seen as a win-win solution: it would reduce the surplus in the domestic market, support farmers with better returns, and help storage owners maintain cash flow. However, industry insiders warn that without government action, the entire potato value chain could collapse.

Government Response and Industry Outlook

So far, the government has not issued an official response, but industry bodies are lobbying hard. They have submitted formal proposals to the Ministry of Agriculture and the Ministry of Power, urging swift implementation of the rebate and incentive schemes.

Some experts believe that a partial rebate is feasible, but a full 20% may be difficult given fiscal constraints. The export incentive, however, has precedent in other agricultural sectors, making it a more likely candidate for approval.

“If we don’t get support now, many cold storages will be forced to close, and that will be a disaster for the entire food supply chain,” said a representative of the cold storage association.

What Could Happen Next

The coming weeks will be critical. If the government announces a relief package, it could stabilize the sector and prevent further losses. If not, the industry faces a wave of closures, which would ripple through the agricultural economy.

For now, owners are holding onto hope, but time is running out. The demand for a 20% power rebate and 30% export incentive is not just about numbers—it’s about survival.

Key Takeaways

  • Cold storage owners are demanding a 20% rebate on electricity bills to offset soaring operational costs.
  • They also want a 30% incentive on potato exports to reduce domestic surplus and improve margins.
  • The sector is facing a severe crisis due to high input costs and stagnant storage fees.
  • Government support is crucial to prevent massive closures and protect the potato supply chain.
  • Without intervention, farmers and traders will face severe financial losses.