Bumper potato, onion harvest bringing barely any profit, farmers face mounting debt
At the farm level, potatoes have been selling for just Tk4-7 per kilogram despite production costs of Tk15-17 and onion growers face similar pressure, with prices at Tk20-25 against costs of Tk38-40.
Strong harvests of potatoes and onions this season have brought little relief for farmers across Bangladesh. Despite reporting good yields, farmers are being forced to sell their produce at prices far below production costs, trapping them in a vicious cycle of debt and loss.
At the farm level, potatoes have been selling for just Tk4-7 per kilogram despite production costs of Tk15-17, according to the Department of Agricultural Marketing. Onion growers face similar pressure, with prices at Tk20-25 against costs of Tk38-40. Meanwhile, farmers yet to harvest face fresh uncertainty after Friday's heavy rain and hailstorms raised fears of crop damage.
Farmers and agriculture stakeholders say that, alongside recurring natural disasters, weak market management has become a major challenge. Farmers face losses both when crops are damaged by adverse weather and when abundant harvests flood the market, driving prices below production costs. Last year saw a similar pattern, with bumper potato and onion yields causing sharp price drops.
This season, cultivation has again exceeded targets. The Department of Agricultural Extension reports that potatoes were grown on about 469,000 hectares, slightly above the 467,000-hectare target, with nearly 70% already harvested. Onion cultivation also surpassed expectations, reaching roughly 302,000 hectares against a target of 286,000 hectares.
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Favourable growing conditions have pushed production estimates higher, with the agriculture department forecasting around 11.5 million tonnes of potatoes and 4.3 million tonnes of onions this year. Far exceeding domestic demand – 9 million tonnes for potatoes and 2.6-2.7 million tonnes for onions – the surplus has repeatedly caused farm-level prices to collapse, leaving farmers unable to recover their investments.
In Shakharia Union of Bogura Sadar, Delwar Hossain has cultivated potatoes for over 35 years. Last year, he stored 550 bags in cold storage, spending over Tk600,000 on production and Tk220,000 on storage, yet could not sell them for even Tk200,000. Nearly destitute, he is trapped in debt from continuous losses.
This year, he planted potatoes again on five bighas, spending about Tk35,000 per bigha, but yields are selling for only Tk12,000–15,000 per bigha. "There are few buyers this season. Many locals are taking potatoes for cattle feed. Potatoes are selling at just Tk100 per maund," he says. Previous losses from other crops, unpaid bills, and leasing 20 decimals of land for Tk200,000 have only deepened his crisis. "This is our reality," Delwar adds.
Another Bogura Sadar farmer, Moslem Uddin Pramanik, who has grown potatoes for 45 years, had hoped last year's losses would be followed by a price rebound, but the market collapse forced him to sell six decimals of land for Tk420,000. "Cultivating potatoes no longer puts food on our table – it takes it away," he says.
Raju Ahmed, also from Shakharia, is now saddled with at least Tk80,000 in debt after cultivating early-season potatoes on eight and a half bighas. Selling onions at Tk20-25 per kilogram, despite Tk40 production costs, he has taken to driving a CNG auto-rickshaw just to keep his household running. "Soon, farmers may even take their own lives under debt," he warns.
Ainul Haque, a teacher and potato grower, explains, "Our land supports three crops a year, so usually gains from one offset losses from another. But this season, the potato losses are so severe that no other crop can compensate. Many farmers are being pushed to destitution." He adds that dismantling fertiliser and pesticide syndicates and opening potato export channels are crucial to reviving the sector.
In Bhimpur village, Naogaon, Mokabbir Ali planted three bighas of potatoes despite a Tk 20,000 loss last year, only to fall into the red again. "Only potatoes and onions thrive on these lands. This season, we're losing on both crops. There's truly no way out for us," he laments.
Abu Noman Faruq Ahmed, professor of Plant Pathology at Sher-e-Bangla Agricultural University, told The Business Standard that soaring prices of fertilisers, seeds, and other agricultural inputs are leaving farmers unable to recover even half of their production costs. To cover losses, many take multiple loans, often ending up forced to sell their land, eventually becoming landless.
He also stressed the urgent need for crop insurance, noting that it was promised in the current government's election manifesto. Proper implementation could shield farmers from losses caused by natural disasters or price collapses, a step he said has now become critical.
Mahfuz Alam, Additional Deputy Director of the Bogura Department of Agricultural Extension, highlights the structural issues behind collapsing potato and onion markets. "Production far exceeds domestic demand, and exports remain limited. Opportunities to process potatoes into other products are untapped. The government must take steps to resolve these problems more easily," he says.
