POTATO PRODUCTION AND COLD STORAGE FACILITIES IN DINAJPUR

DISTRICT
M. R. Haque1, M. D. Hossain2, M. M. Hosain3, M. S. Kabir4 and M. R. Amin5
ABSTRACT
The purpose of the study was to identify the present status of potato production and cold
storages facilities in Dinajpur district. We selected Dinajpur as a study area because huge
amount of potato is produced here. Data were collected by questionnaire for collecting
information. All the cold storages of Dinajpur district were visited from August to October
2008 to study the practical situations existing in those cold storages. The cold storages were
mostly private and were established with Bank loans. Some of the cold storages utilized 100
percent of their installed capacity. Average utilization capacity ranged from 79.3 to 100
percent. The study revealed that present cold storage facilities are insufficient according to
present potato production. The money invested for each cold storages under study area were
varied widely depending on individual situations, size or storage capacity, year of investment,
prices of the land, building materials and cost of building construction. There were
management problems too, regarding the procurement and marketing of potatoes. There was
also shortage of operating capital. Bank loans should be made available to the owners before
procurement, so as to enable them to procure the potato after the harvesting season. Fixed cost,
variable cost, and other relevant cost, for the existing operating condition for each cold storage
was calculated.
INTRODUCTION
Potato is the term which applies either to the starchy, tuberous root vegetable crop from the various subspecies
of the perennial plant Solanum tuberosum of the Solanaceae, or nightshade, family, or to the plant itself. In the
region of the Andes, the word is also used to refer to other closely-related species of the genus Solanum. Potato
is the world's most widely grown tuber crop and the fourth largest food crop in terms of fresh produce after rice,
wheat, and maize (corn).
Potato is very important item of food for human consumption. It is used in culinary preparation in a variety of
products made from its fresh and processed forms. Potato tuber contains about 70 to 80 percent water, 16 to 20
percent carbohydrates, 2.5 to 3.2 percent crude protein, 0.8 to 1.2 percent mineral matter, 0.1 to 0.2 percent
crude fat and some vitamins (Schoenemann,1997).Potato protein has high nutritional value, ranging from 60 to
90. Potato protein contains substantially greater amounts of all the essential amino acids except histidine and the
amount of lysine in potatoes is similar to that in most animal proteins.
Potato need to be stored in a condition so that the losses due to spoilage may be controlled. There are several
methods of potato storage e.g. outdoor or clamp storage, indoor storage and refrigerated or cold storage
(Ahmed, 1977). In Bangladesh potato is harvested during the period, from mid January to late March. Potato
yield ranges from 9 to 23 tones/ hectare depending on the variety. Up to the year 2008 total number of cold
storages in Dinajpur district were eight. Annual production of potato in the year 2008-09 is 685181 metric tons
(Agriculture extension Department, Dinajpur). In comparison to production, potato storage capacities of these
cold storages are extremely inadequate.
Freshly harvested potatoes and other vegetables contain more than 70% moisture. At this high level of moisture
content these crops are prone to spoilage, due to growth of microorganisms, and from the action of enzymes,
which are naturally present in these crops. The primary objective of food preservation is, therefore to stop or
control the growth of microorganisms and the enzymatic activities. The main objective is to prolong the storage
life of the product.
Gupta el al. (1982) carried out a study on two quintals of seed potatoes packed in ordinary jute (gunny) bags
and another two quintals in paddy straw bags. These bags were kept in a commercial cold store to observe

weight loss during four months of storage period. They described that the comparative weight loss, germination
percentage and yield of seed potatoes stored in two types of bags.
As the country is situated in the tropical zone and is hot and humid during summer, so, it is necessary to
preserve the potatoes by maintaining controlled storage environment. To evaluate the process of cold storage
management practices in Dinajpur district a project study was taken under the faculty of Agro-Industrial and
Food Process Engineering at Hajee Mohammad Danesh Science and Technology University in 2008. The
project was aimed at achieving the following objectives: (i) to identify total potato production and storage
facilities in different cold storages. (ii) to identify the constraints faced by cold storage authority during storage
& marketing of potato. (iii) To determine the relationship between potato production & storage capacity in the
study area. (iv) to provide a guideline for betterment of storage facility.
METODOLOGY
A study was undertaken to study the potato production and cold storage facilities of Dinajpur district. For
collecting information we were visited the cold storages from August to October 2008 to study the practical
situations existing in the selected cold storages and to collect other relevant information. The list of all the cold
storages is shown in Table 1.
Table 1. Cold storages which were studied
Name of the cold storages
Uttara Himagarh Ltd.
M. Rahman Cold storage
Suihari Cold storage
Fhulbari cold storage
Punorvoba Food Processing Ltd.
Jahanara cold storage Ltd.
Multipurpose Himadri Agro-processing
Company Ltd.
BADC Cold Storage

Location

Ownership pattern

Sadar, Dinajpur
Sadar, Dinajpur
Sadar, Dinajpur
Fhulbari, Dinajpur
Sadar, Dinajpur
Sadar, Dinajpur
Birgonj, Dinajpur

Sole proprietorship
Sole proprietorship
Partnership
Partnership
Partnership
Partnership
Partnership

Noshipur,Sadar,
Dinajpur

Government

Year of
installment
1981
1981
1983
2001
2005
2005
2006
2007

Data collection
Data were collected through personal interview. During interviewing each question was explained to them
clearly and tried to find out fact as much as possible. Before taking interview, the whole purpose of the study
was clearly explained to the respondents. Initially many of the respondents used to be doubtful to answer the
questions. When they were assured that the study was purely on academic one and was not likely to have an
adverse affect on them, they tried to make good co-operation.
Estimation of economic parameter
Estimated cost consists of fixed cost, which is incurred whether the machine is in use or not, variable costs, this
is the incidental costs from the operation of the machine.
Fixed cost
Fixed cost consists of the reduction in initial cost of the machine, because of ageing, wear, obsolescence, which
is termed depreciation. Other fixed costs are charges for interest on the investment on the machine, taxes,
insurance for the machine, if any.
Depreciation
Depreciation is the reduction in value of cold storage machinery with the passage of time. In a usual situation,
with the cold storage machine being operated 8-9 months per year, obsolescence is the most important factor
affecting depreciation. Calculation of depreciation is shown below, mathematically,

D=

Where,

P-S

L
P= Purchase price of the machine in Tk.
S= Salvage value in Tk.
L= Useful life of machine in years.
D= depreciation, Tk/yr

Interest
The suggested interest rate considered in this study is 10 percent of purchase price.
Interest I = 0.1 P
Where, P = Purchase price in Tk.
Taxes
The annual value of cost of taxes estimated at about 2 percent of the remaining value when spread over 10 year
life. Tax for a particular year on a cold storage can be determined by the following formula.
Tax = 0.02 P
P = Price, Tk.
Insurance
Estimated insurance cost is 0.2 initial valuation of the cold storage for the particular year and can be determined
by the following equation.
Insurance = 0.002 P
P= Price, Tk.
Fixed cost (FC) = Depreciation + Interest + Tax + Insurance
Variable cost
Variable cost includes the costs of electricity, labor, fuel energy, ammonia gas, repair and maintenance costs and
lubrication.
Repair and maintenance cost
Repair costs are difficult to estimate because of wide variation, resulting from difference in operating
conditions, management, maintenance programs etc. Repair cost records of individual cold storage manager,
vary in the accuracy, in form and content. Repair costs include maintenance as well as the cost of all parts, of
the skilled labor cost, to install the parts.
Repair and maintenance cost= Tk/year
Labor cost
The labor cost can be calculated by the following equation.
Mathematically,
L= LC CC
Where,
L= Labor cost (Tk/ yr)
LC= Labor charge (Tk/bag)
CC= Capacity of cold storage (bag)
Energy cost
Typical calculation for energy cost is shown below.
Mathematically,
EC= R.E C AU
Where,
EC= Electrical cost in Tk/yr
R.E= Rate of electrical energy in Tk/ Kwh
C= Capacity of motor in kw
AU= Annual use in hrs
Fuel and Oil costs

Yearly fuel and oil costs were collected from the data recorded by cold storage managers.
Variable cost (VC) = Electrical energy cost (E) + Labor cost (L) + Repair and maintenance cost + Fuel and Oil
cost.
Total cost, Tcost = FC+VC
Where,
FC= Fixed cost Tk/yr
VC= Variable cost Tk/ yr
Calculation of unit storage cost of cold storage
Unit storage cost (Tk/ kg) = Total cost (Tk) / Capacity of the cold storage (kg)
Operating condition of the cold storage
BADC and privately owned cold storages located at Dinajpur were surveyed physically. The operating
parameter such as temperature, relative humidity and operating hour etc associated with BADC and private cold
storages were collected from the manager of the cold storages.
Storage period
Storage period is very important. Potatoes have to be stored often for several months. The loss of potato can be
minimized by a proper storage time. Especially the seed potatoes have to be stored up to certain limit. BADC
and private cold storages at Dinajpur were surveyed physically. The storage period, variation of storage in
different month associated with BADC and private cold storages were collected from the managers of these
cold storages.
Operating parameter of the cold storages
Temperature and relative humidity are the most important factors affecting storage condition of all
commodities. Refrigeration or cold storage can control these factors effectively. BADC and private cold storage
located at Dinajpur. The operating parameter such as temperature, relative humidity, operating hours etc.
associated with BADC and private cold storages were collected from the managers of the cold storages.
Pre-heating of seed potatoes before taking out from storage
At the time of taking out seed potatoes from the cold storage, seeds should never be exposed to high
temperature that outside the storage. Seeds must pass through chambers where pre-heating takes place at 10-15
0
C for at least 72 hours.
Packaging
Packaging of fresh potatoes is considered necessary for convenient distribution of the product to the consumer.
Choice of container for packaging potatoes is dependent on a number of factors. (i) Cost of container, (ii)
Packing cost, (iii) Ease of transit handling, (iv) Product quality, and (v) Consumer acceptance.
RESULTS AND DISCUSSION
Identification of cold storage under study
All the cold storages in the Dinajpur district were included in the study. These cold storages were surveyed from
August to October 2008, and relevant informations were collected. The year of establishment and the
ownership pattern are also indicated in the table.
Capital investment and bank loans for the Cold storages
The money invested for the cold storages under study area varied widely depending on the situations, size or
storage capacity, year of investment, price of the land, building materials, machineries and the cost of building
construction. Capital investment for each cold storage was very high and it is very difficult for an individual to
invest large cash. For this bank loan is essential for establishing such a big enterprise.

Table2. Investment in different cold storages in Dinajpur district according to establishment year
Amount of investment (core taka)
Area
Own
Name of the cold storage
Building Machineries Total
(acre) Land
investment
1. Uttara Himagarh Ltd.
3.00
0.91
0.55
1.00
2.46
1.00
2. M. Rahman Cold storage
1.5
0.5
1.00
2.5
4.00
3. Suihari Cold storage
2.5
1.25
0.6
4.5
6.35
2.5
4. Fhulbari cold storage
2.00
3
2.5
6
11.5
6.5
5. Punorvoba Food
5.48
2.25
4.50
Processing Ltd.
6. Jahanara cold storage
3
3.5
2.8
5.47
11.77
Ltd.
7. Multipurpose Himadri
Agro-processing Company

1.5

2.5

13.5

4.5

Bank loan
1.10
4.00
5.00
-

9.0

Ltd.
8. BADC Cold Storage

Government

Installed capacity and capacity Utilization

Actual stored amounts were varied from year to year. Variations of actual storage from year to year were within
the range of 79.3 to 100 percent of the installed capacities.
Table 3. Installed capacities and the amounts actually stored in the cold storages in Dinajpur district
Name of the cold storage
Installed capacity
Amount of actually stored
(metric ton)
Av
Percent of installed
Based on
Average stored
capacity
in metric ton
Multipurpose Himadri Agro5800
4600
79.31
processing Company Ltd.
Based
on 3
Fhulbari cold storage
10000
9000
90
years data
(2006-08)
M. Rahman Cold storage
5000
4600
92
Jahanara cold storage Ltd.

8000

6500

81.25

Suihari Cold storage

4000

3400

85

Punorvoba Food
Processing Ltd.
BADC Cold Storage

8000

6500

81.25

1000

1000

100

Uttara Himagarh Ltd.

4000

3300

82.5

Cost-benefit analysis
Total storing cost and net profit are tabulated in the table 4. The cost analysis of different cold storages is
presented in table 4. It is found that none of the cold storages suffered losses but the profit (Tk/tone) is
comparatively less in Uttara Himagarh Ltd. and Suihari cold storage than the other cold storages.
Table 4. Storing cost and net profit of different cold storages
Name of the
cold storage
1
Uttara
Himagarh
Ltd.
M. Rahman
Cold
storage
Suihari Cold
storage
Fhulbari cold
storage
Punorvoba
Food
Processing
Ltd.
Jahanara
cold storage
Ltd.
Multipurpose
Himadri
Agroprocessing
Company
Ltd.
BADC Cold
Storage

Storage
rent
(Tk/tone)

Amount
of
product
stored
(tone)

Gross
profit
(Tk) in
thousand

Fixed
cost
(Tk) in
thousand

Viable
cost
(Tk) in
thousand

Total
storing
cost
(Tk) in
thousand

Net
profit
(Tk) in
thousand

Profit
(Tk/tone)

2700

3300

8910

3920.4

1880.32

5800.72

3109.28

942.20

3285

4600

15111

6195.51

3756.01

9951.52

5159.48

1121.62

3285

3400

11169

4802.67

2769

7571.67

3597.33

1058.03

2925

9000

26325

11056.5

5675

16731.5

9593.5

1065.94

3390

6500

22035

9254.7

4987.21

14241.91

7793.09

1198.93

3352

6500

21955.6

9001.79

4205.69

13207.48

8748.12

1345.86

3330

4600

15318

6127.2

3575.54

10502.74

4815.26

1046.79

4140

1000

4140

2070

1125.3

3195.3

944.7

944.7

Spoilage of potato
Spoilage of potato does not generally occur in cold storage, if the operating conditions are maintained and
handled according to standard practice. Each cold storage under study had standby generator, so the spoilage of
potatoes due to the power failure and load shedding was not a prime factor for spoilage. Potato spoilage may
occur due to improper curing of potato, electricity failure, improper potato procurement etc.

Table 5. Spoilage rate of potato in cold storages

Average rate of spoilage

Name of the cold storage

(%)

1. Multipurpose Himadri Agro-processing Company

Ltd.
2. Fhulbari cold storage
3. M Rahman Cold storage
4. Jahanara cold storage Ltd.
5. Suihari Cold storage
6. Ponorvoba Food Processing
7. BADC Cold Storage
8. Uttara Himagarh Ltd.

Based on

1.00
0.7
0.5
0.4
0.65
0.5
0.45

Based on 3 years data

(2006-08)

Control system of the cold storage

Table 6. Control system of the cold storages in Dinajpur district
Name of the cold storage
Control system
1. Multipurpose Himadri Agro-processing
Manual
Company Ltd.
2. Fhulbari cold storage
3. M Rahman Cold storage
4. Jahanara cold storage Ltd.
5. Suihari Cold storage
6. Ponorvoba Food Processing
7. BADC Cold Storage
8. Uttara Himagarh Ltd.

Manual and Automatic

Manual
Manual and Automatic
Manual
Manual
Manual and Automatic
Manual

Weight loss during storage

The loss in weight of potatoes on storage is dependent upon their condition at the time of storage, and the
environment in the storage house.
Table 7. Weight loss (%) due to evaporation of moisture in different cold storages
Name of the cold storage
Weight loss (%)
1. Multipurpose Himadri Agro-processing Company Ltd.
2.38
2. Fhulbari cold storage
1.2
3. M Rahman Cold storage
1.6
4. Jahanara cold storage Ltd.
1.4-1.7
5. Suihari Cold storage
1.1
6. Ponorvoba Food Processing
1.3
7. BADC Cold Storage
2.4
8. Uttara Himagarh Ltd.
2.2
Physical facilities and their management
The cold storage facilities and their management should confirm to the requirements laid down by national
codes of practices, insurance companies, banks, international and national standard or recommendations.
There were no reports of troubles or inconvenience due to general layout of the cold storage surveyed.
Some problems relating to the equipment as reported are e.g. lack of availability of spare parts, repair and
service facilities.

Constraints faced by the cold storage authority

The problems encountered by the cold storage management as understood from interviewing the manager
and other staff of the eight cold storages summarized as follows:
i)
Potato grower does not get any bank loans especially for potato production.
ii)
Bank loans to the growers and cold storages are not always available in time and
in adequate amounts.
iii)
Procurement policies of the cold storages are not fair.
iv)
Acute power supply problem, prolonged power failure, low voltage and frequent
electrical load shading.
v)
Cost of electrical energy is being increased quite regularly.
vi)
Most of the cold storages do not have their own adequate transport facilities for
carrying potatoes.
vii) The cold storages are not uniformly distributed over the entire area where the
potatoes are grown. Perhaps this results in low utilization of installed capacities.
CONCLUSION
The present study indicates that there are no special problems on the technological side regarding the
cold storage in Bangladesh. But for smooth trouble free operation they need uniform and regular supply
of electricity and transportation facilities. Comprehensive plan to mitigate these problems will not only
help growth of cold storage business but will also help the growth of production of potatoes. Therefore,
cold storage facilities can be effectively used for storage of potato in Bangladesh.
REFERENCES
Ahmad, K.U. (1977). Potatoes for the Tropics. . Agricultural Reviews Karnal, India, 19(3): 157-166.
Gupta, A.K., Amarsingh and Singh, V. (1982). Cold storage of seed potatoes in paddy straw Bags.
Agricultural Mechanization in Asia, Africa and Latin America. 13(4): 58-60.
Schoenemann, J.A (1977). Grading, packaging and Marketing potatoes, In: Potatoes production, storing.
Processing, Ora Smith, Ed., 2nd Edition. The AVI publishing company Inc., West port, pp. 470505.