Onion farmers face financial losses from falling prices

PABNA, July 14: Onion farmers in Pabna's Santhia Upazila are facing mounting losses as market prices have dropped well below production costs, forcing many to sell at a loss and prompting some to reconsider cultivating the crop next season.

Farmers and traders who stored onions in anticipation of higher prices say they have instead suffered financial losses as prices continued to decline and stored onions began to rot.

According to the Santhia Upazila Agriculture Office, onions were cultivated on 16,697 hectares of land this season against a production target of 236,756 tonnes. Actual output reached 264,488 tonnes, while around 190,000 tonnes remain in farmers' storage.

Farmers said favourable weather resulted in an excellent harvest. Many produced between 70 and 80 maunds of local onion per bigha, while hybrid varieties such as Sukh Sagar yielded between 100 and 120 maunds per bigha.

Despite the bumper harvest, they said the sharp fall in prices has left them in financial distress.

According to estimates by the agriculture office and local farmers, producing one maund of onions cost around Tk 1,500 this season. However, the crop is currently selling for only Tk 900 to Tk 1,000 per maund, well below production cost.

Farmers also said onions kept in storage have begun to rot, with each maund losing around 15 kilograms in weight due to deterioration.
Abdul Munnaf, an onion wholesaler at Karamja Chaturhat, said the market remained oversupplied as farmers continued to hold large quantities of onions.

"Because prices have not increased, farmers are being forced to sell at a loss," he said.
Santhia Upazila Agriculture Officer Mahmudul Hasan attributed the price slump to a bumper harvest that pushed supply well above market demand.

He said many farmers lacked proper storage facilities and had brought their produce to market simultaneously, increasing supply and driving prices down.

The agriculture office is advising farmers on improved storage techniques, including the use of air-flow systems, so they can preserve onions for longer and sell when prices improve, he added.