Sharp decline in onion prices leaves farmers frustrated

The prices of onions have plummeted by 52.08% in a month, as an early harvest of the staple kitchen ingredient has hit the market, offering consumers some relief amid high inflation.

However, the situation is dire for farmers, who are struggling to cover their production costs due to the current market prices.

At wholesale markets, farmers are selling locally grown Murikata onions (produced from bulbs) for Tk1,200 to Tk1,500 per maund, well below the production cost of Tk2,166 per maund.

In addition to the sharp monthly decline, the Department of Agricultural Marketing (DAM) reported that the price of local onions has dropped by 41.03% compared to the same period last year. It said while the fair price for onions should be around Tk53.2 per kg, they are currently being sold for Tk40 to Tk52 per kg.

Farmers from major onion-growing regions, including Faridpur, Pabna, Rajbari, Jashore, Jhenaidah, Kushtia, and others, have protested the low prices.

In Pabna, farmers went so far as to dump onions on the streets in protest, calling for a fair price for their early-harvested crops and an end to onion imports.

Demonstrations and human-chain protests have also been organised to voice their grievances.

Agriculture economist Dr Jahangir Alam Khan expressed concerns that if farmers are unable to cover their production costs, they may lose interest in onion cultivation.

He stressed, “The import of onions during the peak harvesting season should be banned to protect farmers, as the market is already flooded with onions.”

Murikata onions typically begin appearing in markets at the end of December or early January. While these early-season crops are more expensive to cultivate, they usually yield a good price. However, this year's situation is markedly different.

Production Cost

Farmers explained that the price of onion seeds has been high, with the cost of onion bulbs ranging from Tk7,000 to Tk12,000 per maund for planting Murikata onions. On average, 10 maunds of seeds are needed per bigha of land, which can cost up to Tk80,000.

In addition, other expenses such as land leasing, fertilisers, pesticides, and labour can add another Tk40,000, bringing the total cost to around Tk130,000 per bigha.

Typically, a bigha of land yields around 70 maunds of onions, but this year's harvest has been affected by adverse weather, resulting in only 50 to 60 maunds per bigha.

Mostak Mollah, a farmer from Jashore, said, “If we could sell the onions at Tk60 per kg, we would at least make some profit.”

Govt to review potential impact of onion import

Dr Mohammad Emdad Ullah Mian, secretary of the Ministry of Agriculture, told the Daily Sun that the ministry has formed a committee to investigate whether onion imports have contributed to the price drop in the domestic market.

“If imports are found to be responsible, the government will regulate Import Permits (IPs). We must balance the interests of both farmers and consumers,” he said.

The secretary also mentioned that the decline in onion prices is partly due to various government initiatives, such as the Open Market Sale (OMS) programme, aimed at controlling rising prices.

He also added that 400,000 tonnes of onions have been imported into the country this year.

Production Target

The government has set a target of producing 39.663 lakh tonnes of onions from 2.602 lakh hectares of land this year. Bangladesh typically requires about 25 lakh tonnes of onions annually, with local production meeting most of the demand, according to the Bangladesh Trade and Tariff Commission.

Harvesting of summer onions has already begun, with the Department of Agricultural Extension (DAE) targeting 9.3 lakh tonnes of murikata onions from 0.606 lakh hectares of land. However, the area planted with murikata onions has exceeded expectations, reaching 67,771 hectares, or 111.83% of the target.

In the summer season, DAE had aimed to produce 1.453 lakh tonnes of onions from 0.083 lakh hectares.

However, onions have been cultivated on only 0.061 lakh hectares across the Kharip-1 and Kharip-2 seasons. By 15 December, only 18.11% of the Kharip-2 harvest had been completed, yielding 0.114 lakh tonnes of onions, according to the DAE.

The harvesting season for onions in Bangladesh typically begins in March. Onions grown from seeds during the main season can be stored for long periods. The Ministry of Agriculture estimates that the next season could see a harvest of 27.42 lakh tonnes from 1.803 lakh hectares of land. Despite producing more onions than the country's annual demand during the winter season, around 25% of locally produced onions perish due to a lack of adequate storage facilities and inefficient post-harvest management, leading to shortages during the lean period.