Onion-potato farmers undergo big losses this season

Onion and potato farmers across the country are facing severe financial losses this season due to a combination of record-low prices at the farm level, disease outbreaks and soaring cold storage costs.

Farmers in Pabna and Faridpur, which are major onion-producing regions, have cultivated onions to a great extent this year. Despite the increased production, farmers have been unable to get profitable prices.

Hadisul Islam, a farmer-cum-trader from Atgharia in Pabna, said that after getting low prices of Murikata onions, farmers hoped to recover losses from Hali onions.

The market remains weak and early blight disease has further impacted onion production.

"Plants in many fields have been attacked by blight, preventing onion bulbs from growing to their full size," he said.

According to farmers, the production cost of Murikata onions is around Tk 35 per kg, while Hali onions cost Tk 40-42 per kg due to the rising seed prices this year.

However, in the wholesale market, Murikata onions are selling for just Tk 16-20 per kg, while Hali onions are fetching only Tk 22-25 per kg, causing farmers to lose Tk 15,000-20,000 per bigha (33 decimals).

If disease-related losses continue, their financial situation could worsen further, Islam said.

Farmers in Rajbari and Pabna also reported widespread crop damage.

Many said their onion plants started drying up after light rainfall a few days ago, and despite spraying pesticides, farmers are failing to fight the disease.

Shahidul Alam, a farmer from Sujanagar in Pabna, said, "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."

Similarly, Atiqul Islam, a farmer from Khankhanapur, Rajbari, said, "Last year, we sold onions at Tk 40-45 per kg and still made a 25-30 profit, even with lower production. Encouraged by this, I planted Murikata onions on two extra bighas of land. But now, the prices have fallen by more than half, leaving us with no profits," he said.

Meanwhile, potato farmers are facing a triple blow-a 60-70 per cent hike in cold storage costs, record low prices in villages and imports even during the peak harvest season.

A sharp increase in the cold storage rent has further worsened their situation.

Farmers say the rent has surged from Tk 4.0 per kg to Tk 6.75 per kg, despite no significant rise in electricity or operational expenses.

The Bangladesh Cold Storage Association (BCSA) initially set the maximum rent at Tk 8.0 per kg, later revising it to Tk 6.75 per kg based on the Department of Agricultural Marketing (DAM) recommendations.

Previously, farmers could store 70kg sacks for a flat rate of Tk 350. Under the new system, they must pay Tk 6.75 per kg, significantly raising their costs.

Fahim Hossain Chowdhury, a Dinajpur-based potato farmer-cum-trader, said potato prices dropped to Tk 8.0-10 a kg in February, far below the minimum production cost of Tk 15 a kg.

Although prices have slightly increased in March, farmers are struggling to find space in cold storage facilities, which have been largely taken over by storage owners and their allied traders.

"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," he said.

"We are already in a tough situation as prices have fallen to a three-year low," he said.

When contacted, Mustafa Azad Chowdhury, president of the Bangladesh Cold Storage Association, defended the rent increase, citing high bank loan interest rates, rising operational costs, and new labour laws.

He said the 50 kg sack limit was introduced to comply with labour regulations.

"The rent was already Tk 7.0 per kg, but previously, we allowed 70-80 kg sacks at a flat rate of Tk 350-400 across the country. Due to labour rights issues, we are now bound to allow only 50 kg sacks," he said.

Farm economist Golam Hafeej Kennedy said that while consumers are benefitting from higher production and reduced extortion, farmers are suffering due to the limited storage options and low market prices.

He urged the government to restrict onion and potato imports for the next few months to give local farmers some relief.

He also suggested a review of cold storage fees, ensuring small and medium-scale farmers get storage space at affordable rates.

He called for direct cash subsidies for onion farmers, as their efforts have nearly made Bangladesh self-sufficient in onion production.

"A significant price loss could discourage farmers, leading to a drop in production in the coming years," he said.

However, retail prices of potatoes are now Tk 15-30 a kg across the country which was Tk 30-42 a kg in the corresponding period of last year.

Onion is now retailing at Tk 35-45 a kg in Dhaka, which was Tk 65-80 a kg in the same period last year, according to the Trading Corporation of Bangladesh.

According to official data, Bangladesh produced 10.1 million tonnes of potatoes and nearly 3.0 million tonnes of onions in the last financial year.

tonmoy.wardad@gmail.com