Onion farmers face heavy losses as prices fall amid supply glut
Farmers are being forced to sell their produced onion for just Tk900 to T1,100 per maund in local markets, incurring a loss of Tk500 to Tk600 per maund.
Onion farmers in several districts, including Faridpur and parts of northern Bangladesh, are facing heavy losses this season as market prices drop sharply amid a supply surplus, falling well below production costs.
Farmers say onions are now selling at Tk700 to Tk1,100 per maund in many markets, while production costs range between Tk1,400 and Tk1,600 per maund, leaving growers with significant losses.
Agriculture officials attribute the price decline mainly to a glut in supply following large-scale cultivation and a bumper harvest in several districts.
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In the northern region, the Department of Agricultural Extension (DAE) zone comprising Bogura, Sirajganj, Pabna and Joypurhat has cultivated onions on about 59,439 hectares of land this season. Of this, roughly 54,400 hectares are in Pabna alone.
In Santhia upazila of Pabna, where onion cultivation reached 16,690 hectares, Murikata onions were grown on around 1,610 hectares.
Farmers say Murikata onions entered markets about one and a half to two months ago. Initially, prices were around Tk3,500 per maund, before falling to Tk1,300-Tk1,400 and later dropping further to Tk700-Tk800 per maund at the wholesale level.
Bablu, a farmer from Kashinathpur in Pabna, said the average production cost of onions was about Tk1,600 per maund.
"Even a week ago we could make a small profit by selling onions. Now we are incurring losses. There are still plenty of onions left in the fields," he said.
Farmers say onion cultivation is often financed through loans, and the current prices are not enough to recover their investment.
They say repaying debts has become difficult, while even maintaining household expenses is now a challenge.
Golam Mostafa, a farmer from Naogaon Sadar, said growers have few alternatives.
"A farmer cannot leave land fallow. We have no other source of income, so we are forced to cultivate onions. No crops other than potatoes and onions grow well on our land. This time we also incurred losses from potatoes," he said.
Motahar Hossain, the largest wholesale onion trader at Satihat market in Manda upazila of Naogaon, said many farmers are reluctant to harvest their crops because of the current low prices.
"There is a large supply of onions in the market but demand is comparatively low. Prices may increase before Eid. If that does not happen, onions may become a burden for farmers, similar to potatoes," he said.
According to DAE, onions in Bangladesh are cultivated mainly using two methods – Murikata and Hali.
Under the Murikata method, cultivation takes place between October and November, with harvesting from late December to March. In the Hali method, onions are planted between December and January and harvested from March to April.
Farmers have been facing losses from onion cultivation for the last two years, officials said.
Abdul Wadud, additional director of the DAE in the Bogura region, said farmers have been suffering major losses from both onion and potato cultivation.
"If the market price of onions falls below Tk50 per kg, farmers will suffer – and that is exactly what is happening. We have no control over the market," he said.
Faridpur farmers face similar losses
A similar situation has emerged in Faridpur, the country's second-largest onion-producing district, where farmers say prices have fallen sharply despite a bumper harvest.
Fields across several upazilas are currently busy with harvesting, but farmers say the low prices have left them with little to celebrate.
Growers say producing one maund (around 40 kilogrammes) of local onions costs Tk1,400-Tk1,500, mainly due to higher prices of seeds, fertilisers, pesticides, irrigation and labour.
However, they are being forced to sell their produce for Tk900 to Tk1,100 per maund in local markets, resulting in losses of Tk500-Tk600 per maund.
"After spending Tk1,500 per maund, I now have to sell at this rate," said Shafiqul, a farmer at Balia Bazar in Saltha upazila.
Many farmers say they are selling onions at a loss because they urgently need cash to cover household expenses and repay loans.
According to the Faridpur DAE, onions were cultivated on about 54,000 hectares of land in the district this season, exceeding the initial target of 48,000 hectares.
In Saltha upazila alone, onions were grown on around 12,500 hectares of land.
Md Shahaduzzaman, deputy director of the Faridpur DAE, said the price fall is mainly due to excess supply in the market.
"Supply has far exceeded demand at this moment. I recommend that farmers store their onions for a few months to secure a better price when the market stabilises," he said.
Farmers, however, say the lack of cold storage facilities in many unions makes it difficult for small-scale growers to store onions for a longer period.
Jashimuddin, who cultivated onions on five bighas of land, said such losses could discourage farmers from planting onions in future seasons.
"If this continues, farmers may reduce onion cultivation and the country may become more dependent on imports," he said.
Traders at Nakulhati, Thenthenia and Kagdi markets said wholesalers from Dhaka and Chattogram have started arriving to buy onions, but prices remain stagnant.
Abdul Khaleque, owner of Malek Traders, said traders are also facing losses at current rates.
"We are buying onions at Tk25-Tk26 per kilogram, which is causing losses for us as well. A price of Tk1,500 to Tk1,600 per maund would be reasonable for both farmers and traders," he said.
Similar conditions have also been reported in Nagarkanda, Bhanga, Boalmari and Madhukhali upazilas.
Kawsar Majumdar, an onion grower from Hasamdia village, said he spent Tk30,000 to Tk35,000 cultivating onions on 30 decimals of land.
"To break even, we need to sell at Tk2,000 to Tk2,500 per maund. We urge the government to set onion prices similar to those fixed for rice and wheat," he said.
