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TUESDAY, JUNE 10, 2025
A path to onion self-sufficiency in Bangladesh

Thoughts

Dr M Monir Uddin
07 April, 2025, 07:25 pm
Last modified: 07 April, 2025, 07:27 pm

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A path to onion self-sufficiency in Bangladesh

Bangladesh has demonstrated its capacity for agricultural transformation through its rice revolution. Applying similar vision and determination to the onion sector can achieve equally impressive results

Dr M Monir Uddin
07 April, 2025, 07:25 pm
Last modified: 07 April, 2025, 07:27 pm
The supply chain for onions remains fragile, unable to balance production and demand effectively. Photo: TBS
The supply chain for onions remains fragile, unable to balance production and demand effectively. Photo: TBS

Bangladesh's agricultural sector plays a vital role in feeding its population and supporting the economy. With 16.5 million farming families, agriculture employs 40% of the workforce and contributes 14% to GDP. Among various crops, onion holds particular importance as a daily essential in Bangladeshi cuisine. Despite significant domestic production, the onion sector faces persistent challenges that affect everyone from farmers to consumers.

In 2023, onion cultivation covered 2.49 lakh hectares across key regions including Faridpur, Kushtia, Jessore, Pabna, and Rajshahi, yielding 3.4 million tonnes. While these numbers appear substantial, the reality is more complex. The onion market suffers from chronic instability, with prices fluctuating wildly between seasons. During harvest periods, oversupply often leads to depressed prices that fail to compensate farmers fairly. Conversely, in off-seasons or when imports face disruptions, prices can triple within weeks, as witnessed during India's 2023 export ban.

Several structural issues contribute to this volatility. Storage capacity remains woefully inadequate, with most farmers lacking proper facilities to preserve their harvest. Bureaucratic hurdles complicate distribution, while business syndicates and middlemen manipulate the market to their advantage. Perhaps most critically, the supply chain remains fragile, unable to balance production and demand effectively. These systemic problems create a situation where neither producers nor consumers benefit optimally.

The seed production challenge represents another critical bottleneck. Bangladesh currently produces only 150 tonnes of onion seeds annually against a requirement of 300 tonnes. This 50% deficit forces reliance on imports, creating vulnerability. The problem is compounded by poor storage conditions at the farmer level. Traditional storage methods fail to account for rising temperatures and humidity due to climate change, resulting in significant seed spoilage before planting. In Faridpur, a key onion-growing region, farmers report up to 60% of stored seeds losing viability due to improper storage.

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The situation with onion bulbs is equally concerning. Farmers traditionally store bulbs for two purposes: producing cut onions for early winter markets and generating seeds for the next planting season. However, about half of these stored bulbs rot before they can be planted, victims of unfavourable storage conditions. This massive wastage directly reduces the following season's planting capacity, creating a vicious cycle of underproduction.

Existing cold storage facilities operated by the Bangladesh Agricultural Development Corporation (BADC) in Faridpur demonstrate what's possible. These units maintain temperatures of 0–2°C, preserving onion bulbs with minimal losses. The stored bulbs are then distributed to contracted farmers for seed production. This successful model, if expanded, could transform the entire sector. Imagine similar facilities available to all farmers across major onion-growing regions—the impact would be revolutionary.

Comprehensive cold storage implementation could address multiple challenges simultaneously. For seeds, proper storage would maintain germination rates, ensuring farmers get maximum yield from their planting. For bulbs, it would dramatically reduce the current 50% spoilage rate, making more available for both consumption and seed production. The extended shelf life would allow strategic release of onions to the market, smoothing out price fluctuations that currently plague the sector.

The economic benefits would be substantial. With reliable storage, domestic onion production could potentially increase to five million tonnes annually, eliminating the need for imports that cost millions of dollars each year. Beyond self-sufficiency, Bangladesh could position itself as an onion exporter, with potential to ship 1.5–2 million tonnes to international markets. For farmers, reduced post-harvest losses and better market access would significantly improve incomes and livelihoods.

The supply chain would also benefit. Cold storage would enable farmers to store their produce and sell gradually rather than being forced to sell immediately after harvest when prices are lowest. This would reduce the power of middlemen and syndicates who currently exploit market timing to their advantage. Consumers would enjoy more stable prices year-round, without the sudden spikes that make headlines and strain household budgets.

Implementing this vision requires coordinated action. The government must prioritise cold storage infrastructure in key production zones, possibly through public-private partnerships. Policy reforms should address market manipulation while supporting farmer education on modern storage techniques. Investment in research could develop onion varieties better suited to local conditions and storage requirements.

The parallels with Bangladesh's success in achieving rice self-sufficiency are striking. Similar systematic approaches applied to onion production could yield comparable results. Initial pilot projects in high-production areas could demonstrate effectiveness before broader rollout. Monitoring systems would ensure proper implementation and allow for adjustments.

Beyond immediate economic benefits, a stabilised onion market would contribute significantly to national food security. It would reduce vulnerability to international trade disruptions and climate variability. For rural communities, it would provide more predictable incomes and greater resilience against economic shocks. The environmental benefits of reduced waste would complement these advantages.

The path forward is clear but requires commitment. Strategic investments in storage infrastructure, coupled with supportive policies and farmer education, can transform Bangladesh's onion sector. Within three to five years, the country could achieve self-sufficiency, stabilise prices, and potentially develop a new export commodity. The benefits would ripple across the economy, from farm households to urban consumers.

This comprehensive approach addresses all aspects of the onion value chain from seed preservation to market access. It balances immediate needs with long-term sustainability, creating a system that serves farmers, consumers, and the national economy. The time for action is now, as climate change and market volatility make the status quo increasingly untenable.

With proper storage infrastructure as the foundation, supported by enlightened policies and farmer empowerment, the country can solve its onion challenges permanently. The result would be a more stable, prosperous agricultural sector that better serves all Bangladeshis.

Dr M Monir Uddin is an agronomist. He is a consultant for GAIN Bangladesh. He can be reached at: monir.uddin@rocketmail.com. 


Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.

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