Onion cultivators in Bangladesh are encountering challenges due to a marked decline in prices during the harvest peak. In regions like Pabna and greater Faridpur, the influx of new onions has led to price reductions, complicating the recovery of production costs.
Md Rabiul Islam, a trader at the Pushpopara wholesale market in Pabna Sadar upazila, reported a steep price drop. "Each maund (around 40 kilograms) was fetching $13 to $14 last week. By Monday, it dropped to $11 to $12, and on Thursday, it fell further to $8 to $10," he stated.
The district's wholesale markets have seen a surge in onion supply, with demand remaining weak. At the Pushpopara market, the availability rose from 80-100 tonnes on Monday to over 200 tonnes by Thursday. Supply is anticipated to increase further, given the current demand scenario.
Md Kamruzzaman, a farmer from Durgapur village in Sujanagar upazila, expressed concerns over declining prices. "This year, I was getting $11 to $12 per maund last week. The price is so low that I have stopped selling onions for now," he mentioned. Kamruzzaman's cultivation on 80 bighas, including 30 bighas of leased land, has resulted in elevated production costs. "It costs $230 to $275 to cultivate one bigha of onions on owned land, but on leased land, the cost exceeds $460 due to lease payments," he explained. His estimated production cost is over $0.36 per kg.
Md Ashikur Rahman, deputy assistant agriculture officer of the Department of Agricultural Extension (DAE) in Pabna, noted the influence of high seed, fertilizer, and lease costs on production expenses, estimating a cost of $0.34 per kg. "Last year's high prices encouraged more farmers to grow onions this year, leading to increased production," he added.
DAE data indicates a 10 percent expansion in onion cultivation to 2.93 lakh hectares in FY25. Farmers like Mafikul Islam from Khoar village in Saltha upazila, Faridpur, have observed rising production costs. "Last year, I made a profit of $920, but this year, prices are very low, which is worrying," he said.
Despite increased supply, demand remains subdued in major wholesale markets. "At least 10-12 truckloads of onions are being sent to Dhaka, Mymensingh, Tangail, and nearby districts, but we are unable to sell in Chattogram and Sylhet," said trader Rabiul Islam, citing large stocks of imported onions in those regions.
Md Rokonuzzaman, additional deputy director of DAE in Pabna, advised farmers not to panic over the low prices. "A bumper harvest has increased supply, pushing prices down. We have advised farmers to store onions, as prices are expected to rise once the harvesting period ends," he said. Efforts are underway to enhance storage facilities in Pabna, a key onion-producing region.
Source: The Daily Star