Onion and potato growers in Bangladesh are encountering financial challenges due to record-low farm prices, disease outbreaks, and increased cold storage costs. In Pabna and Faridpur, major onion-producing regions, farmers have expanded onion cultivation but face unprofitable prices. Hadisul Islam, a farmer from Atgharia, Pabna, noted that low prices for Murikata onions led farmers to hope for recovery through Hali onions. However, the market remains weak, compounded by early blight disease impacting production.
Farmers report that Murikata onion production costs are approximately $0.32 per kg, while Hali onions cost $0.37-$0.39 per kg due to higher seed prices. Yet, wholesale prices for Murikata onions are only $0.15-$0.18 per kg, and Hali onions fetch $0.20-$0.23 per kg, resulting in losses of $540.15 - $722.85 per hectare. Shahidul Alam from Sujanagar, Pabna, mentioned, "After the rain, the tops of the plants turned brown. I have sprayed pesticides, but they are not working. I expected 55 maunds of onion per bigha, but now I doubt I will even get 25 maunds."
Potato farmers face a 60%-70% increase in cold storage costs, low village prices, and imports during peak harvest. Cold storage rent rose from $0.04 per kg to $0.06 per kg, although operational expenses haven't increased. The Bangladesh Cold Storage Association (BCSA) set the maximum rent at $0.07 per kg, later revised to $0.06 per kg based on the Department of Agricultural Marketing (DAM) recommendations.
Fahim Hossain Chowdhury, a Dinajpur-based potato farmer, stated that prices fell to $0.07-$0.09 per kg in February, below the $0.14 production cost. Although prices slightly increased in March, storage space is scarce, dominated by storage owners and allied traders. Chowdhury noted, "The production of potatoes has increased by 20-25 per cent this year, meaning prices might remain stable for the next eight months. However, small farmers will struggle to make profits due to the 60-70-per cent hike in storage fees."
Mustafa Azad Chowdhury, president of BCSA, defended rent hikes, citing high bank loan interest rates, rising operational costs, and new labor laws. Golam Hafeej Kennedy, a farm economist, urged the government to restrict imports and suggested reviewing storage fees to aid small farmers. He also recommended direct cash subsidies for onion farmers to maintain production levels.
Retail potato prices are now $0.14-$0.28 per kg, down from $0.28-$0.39 last year. Onion prices in Dhaka are $0.32-$0.41 per kg, compared to $0.60-$0.73 previously, according to the Trading Corporation of Bangladesh. Official data shows Bangladesh produced 10.1 million tons of potatoes and nearly 3.0 million tons of onions last financial year.
Source: The Financial Express