The Bangladesh Agricultural Development Corporation (BADC) will provide loans to 893 contracted farmers in FY27 to boost potato seed production, offering up to Tk1,05,610 per acre through Bangladesh Krishi Bank.
The loan amounts will vary by seed category, according to a bank circular issued on 1 November. The programme follows a five-year memorandum of understanding signed by BADC and Krishi Bank on 19 October 2025, effective until 30 September 2030.
The loans will cover farmers under BADC’s 20 potato seed production zones across 19 districts: Gazipur, Sherpur, Kishoreganj, Jamalpur, Jashore, Faridpur, Kushtia, Cumilla, Meherpur, Moulvibazar, Sylhet, Tangail, Narail, Gopalganj, Patuakhali, Bhola, Chuadanga and Magura.
Under the policy, farmers will receive Tk1,05,610 per acre for foundation seed production, Tk87,130 for certified seed production using imported foundation seed and Tk58,640 for certified seed production.
Foundation seed is higher-grade planting material used to produce certified seed, which must meet prescribed standards for varietal purity and germination capacity.
Loan disbursement must be completed by 30 December, with repayment, including interest, due by 30 June next year. The funds will cover seeds, fertilisers, pesticides, crop-protection chemicals and other production inputs.
In FY26, Krishi Bank disbursed Tk17.59 crore to 1,133 farmers nationwide and recovered 99.74% of the loans, according to a bank report. The latest circular says budget allocations will not constrain disbursement and directs BADC and bank officials to coordinate loan distribution and recovery.
Quality seed supply falls short of demand
Despite rising potato production, quality seed supply remains inadequate. A 2024 Bangladesh seed sector assessment by Wageningen University and Research, citing BADC data, estimated annual demand at 7 lakh–7.7 lakh tonnes.
Government and private institutions meet only around 20% of this demand. Private companies supply about 15% and BADC 5%, while farmers preserve the remaining 80% from their harvests for the next season.
BADC, the Bangladesh Agricultural Research Institute (BARI) and private firms, including BRAC Seed, ACI and Supreme Seed, produce and supply potato seeds. Some companies import foundation seed and multiply it through contracted farmers. BARI’s Tuber Crops Research Centre develops varieties and produces early-generation seed, while BADC and private firms produce foundation and certified seeds.
BADC set the price of first-grade seed at Tk27 per kg for FY27. Private-sector and imported high-quality seeds sold at higher prices, making seed a major cultivation cost.
Production dips despite long-term growth
Potato is important for food and nutrition security, farm incomes and agro-processing. The winter crop is grown across almost all districts and used in products such as chips and French fries.
Bangladesh Bureau of Statistics data show potato production fell 2.6% to 1.1272 crore tonnes in FY26 from 1.1573 crore tonnes in FY25. Cultivation area also declined from 12,29,298 acres to 11,49,449 acres, equivalent to around 4.65 lakh hectares.
Long-term production has risen, however. A General Economics Division report said output increased from 58 lakh tonnes in 2000 to around 1.1 crore tonnes in 2023. Bangladesh ranks seventh globally in potato production, while annual per capita consumption rose from 25kg in 2000 to 30–35kg in 2023.
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