Ramadan relief for shoppers. Farmers pay the price? 

Infographic: TBS

As the month of Ramadan unfolds, shoppers across Bangladesh are breathing a sigh of relief as the prices of key vegetables – staples in iftar spreads – have eased, offering some comfort amid rising living costs.

However, while consumers fill their baskets with cheaper potatoes, onions, tomatoes, and green chilies, a different story is unfolding in the fields. Farmers, who have toiled for months to bring these crops to market, are now watching their hard-earned produce sell for less than the cost of growing them.

Take potatoes, for example. Farmers say it costs them between Tk18 and Tk20 per kilogram to produce this season. Yet, at local markets, they are being offered as little as Tk10 to Tk12 per kg – barely enough to recover their expenses, let alone make a profit.

The situation is much the same for onion growers. With production costs hovering around Tk38 to Tk41 per kilogram, many farmers are being forced to accept just Tk22 to Tk25 instead.

"We wait the whole year for a fair price," says Nafisul Islam, a farmer from Bogura, one of the country's largest potato-growing regions. "This year, it's heartbreaking. We are losing money on every kilogram we sell."

Agriculture experts point to a glut in production this year, coupled with weak market linkages and a lack of proper storage facilities.

"It's a familiar cycle," says Dr Mohammad Jahangir Alam, Professor of Department of Agribusiness and Marketing, Bangladesh Agriculture University. "When production is high, prices drop at the farm gate. Consumers benefit in the short term, but farmers suffer."

He added, "If this continues, it discourages production in the following seasons."

How potato overproduction affects farmers

According to the Department of Agricultural Extension, farmers have harvested 90% of their potato crops this season. So far, production has reached 1.15 crore tonnes, the highest ever. This year, potatoes have been cultivated on 5.24 lakh hectares of land, which is about 13% more than the target.

Compared to last season, the land area for potato cultivation has increased by 15%. Agricultural officials estimate that total production this year could reach around 1.25 crore tonnes, although the country's demand is around 90 lakh tonnes.

Mostofa Azad Chowdhury Babu, managing director of Chashi Cold Storage Limited and President of the Bangladesh Cold Storage Association, said the drop in potato prices is due to an oversupply in the market.

He noted that last year's good harvest and high prices encouraged farmers to cultivate potatoes on a larger scale this season. Favourable weather conditions further contributed to increased production.

Last year, the price of potatoes exceeded Tk50 in May and reached Tk80 per kilogram in November. Due to high prices, farmers increased potato production this season.

Speaking to TBS, he said, "According to our estimates, potato production last year was around 75 lakh to 80 lakh tonnes. Farmers sold potatoes at prices ranging from Tk25 to Tk37 per kg."

Farmer Nafisul Islam said recently, the increase in cold storage rental fees has added another layer of financial pressure. "Last year, we stored potatoes at Tk330 per sack, which has increased to Tk400 this year."

Mostofa Azad Chowdhury Babu said, "The price increase in cold storage will lead to a rise of Tk1.25 per kilogram of potatoes."

According to cold storage owners, the country's cold storage capacity is around 45 lakh tonnes. Last year, farmers and traders stored 25 lakh tonnes of potatoes in these cold storages.

Tomato, green chili, onion farmers face challenges

Tomato farmers are facing similar challenges, as are those growing green chilies and pumpkins. The vegetables that usually add colour and flavour to iftar platters are now leaving a bitter taste for their growers.

The Department of Agricultural Marketing states that the fair wholesale prices should be Tk26 for tomatoes, Tk45 for green chilies, and Tk24 for sweet pumpkins. However, tomatoes are currently sold at Tk8-Tk16, chilies at Tk30, and pumpkins at Tk8-Tk20.

Last year, the onion market was unstable, with prices remaining above Tk100 for most of the time. As a result, onion cultivation increased by 8% this year. Consequently, onion prices have also fallen.

According to the Department of Agricultural Extension, farmers have cultivated onions on 2.80 lakh hectares of land this year. Agricultural officials predict that onion production could exceed 40 lakh tonnes, the highest ever recorded.

Rahman Pramanik, a farmer from Baiatola village in Sathia, Pabna, has grown onions on 11 bighas of land this year. He told TBS, "I haven't harvested the onions yet. I'm waiting a little longer, hoping for a price increase. If I sell them at the current price, I'll incur significant losses."

He also mentioned that this year's yield is lower than usual due to the "tip rot disease" caused by recent rains.

Farmers say the cost of producing one kilogram of tomatoes for farmers is around Tk10. However, for the past month, they have been selling it at Tk3-Tk5 per kilogram at the farmer level.

Shilpi Sardar, a farmer from Tiladanga village in Dakope, Khulna, said, "The wholesale market offers Tk10 for 4 kilograms of tomatoes. But it costs me Tk3 per kilogram to bring it to the market. How can I sell it? As a result, tomatoes are rotting on the plants, and I'm not selling them."

'Farmers need training, data to make informed decisions'

Professor Dr Mohammad Jahangir Alam from Bangladesh Agricultural University emphasised the need for long-term planning. He said, "We need a balanced system that ensures fair prices for farmers without harming consumers and protects consumers' interests without negatively impacting farmers."

He also stressed the importance of providing accurate information to farmers.

Professor Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), said, "Farmers should be provided with training and data to make informed decisions."

He further stated that to prevent market instability due to supply fluctuations, storage management must be improved. "The connection between agriculture and industry is very weak in our country, and we need to strengthen it through processing," he added.

He also emphasised the importance of focusing on exports, stating, "We need to follow international guidelines for agricultural exports to enhance production."

To control inflation, import management needs to be strengthened, he said. While the inflation rate has decreased, it will take time for general inflation to return to previous levels.

"The prices of imported goods, however, have not decreased. We need to monitor international markets and adjust import policies when prices are low," said the economist.