Growers rejoice as onion prices exceed production cost

Onion farmers in Pabna are finally smiling as prices have surged to Tk 50 per kg, up from the production cost of Tk 38-40 per kg. 

According to Md Jahangir Alam Pramanik, Deputy Director of the Pabna Department of Agricultural Extension, onion prices between Tk 50-60 per kg are considered normal and tolerable. However, he warned that any price exceeding this range could signal an abnormal market trend.  

Speaking to Jago News on Monday (April 21), Jahangir Alam said that he has communicated with higher officials to prevent abnormal price hikes. Despite the recent price increase, farmers face challenges due to earlier losses incurred during the cultivation of early-ripening onion varieties.  

Initial losses and price surge  

From the beginning of March, large quantities of onion seedlings and young onions began flooding the market, causing prices to plummet to Tk 1,000 per maund (40 kg). This left farmers struggling financially. However, due to a ban on imports and reduced market supply caused by hoarders, onion prices doubled within a week. Farmers are now relieved but are urging the government not to resume imports to maintain stable prices.  

Many onion farmers in Pabna rely on loans from private organizations and other sources to fund their cultivation. As a result, they face immense pressure to repay debts at the start of the harvesting season. To meet these obligations, a significant portion of onions is sold within one to two months of harvesting. Additionally, inadequate storage facilities force many farmers to sell their produce prematurely. 

Only about 20-30 per cent of farmers – who either have storage facilities or are financially secure—retain their onions in hopes of better prices.  

Farmers’ struggles and relief 

This season’s scenario mirrors previous years. Many farmers sold a large portion of their onions at a loss early in the harvesting period to settle pesticide shop debts and other liabilities. While the recent price hike has brought some relief, most farmers worry about recovering their capital since they’ve already sold a majority of their produce.  

Farmer Yunus Ali Molla expressed mixed feelings, saying, "The cost per bigha was Tk 50,000 to 70,000. The yield was low this time, averaging 35-40 maunds per bigha, with the highest being 50 maunds. I sold half of my onions in batches to repay loans when prices were Tk 1,000 per maund. Now that prices have increased, it’s good news, but it won’t cover our initial costs."  

Market dynamics and farmer sentiments 

A visit to wholesale markets like Hazirhat revealed that onion prices have doubled in just a week. Farmers are now bringing more onions to markets, selling them at prices ranging from Tk 1,000 to 2,200 per maund, depending on quality. A week ago, the same onions fetched only Tk 1,000-1,300 per maund.  

Alimuddin Khan, a farmer selling onions at Hazirhat, explained, "Onion bundling begins in Baishakh (mid-April). Traders buy more onions during this period for storage. With fewer imported onions in the market, prices have risen. If prices had been this high earlier, farmers could have repaid their loans."  

Sajib, another farmer from Haludbaria, echoed similar sentiments: "Imports lower prices, but since they’re currently banned, prices have increased slightly. Traders are buying more onions for bundling, which benefits us. During harvest, we had to sell onions for Tk 1,000 per maund. If prices remain favourable now, we’ll see profits."  

Onion traders Osman Gani and Abdur Rob noted that onions from Meherpur, which dominated the market for three months, are no longer available. Combined with the import ban and increased stockpiling, this has driven prices higher, benefiting farmers. However, they believe prices are unlikely to rise further.  

Cultivation success and storage initiatives 

According to the Department of Agriculture, Pabna exceeded its onion cultivation target this season. The initial target was 44,000 hectares, but actual cultivation surpassed this figure. Similarly, while the production target was 6,80,000 tonnes, farmers produced 7,12,000 tonnes. Despite this success, many farmers report lower yields compared to previous seasons.  

Deputy Director Jahangir Alam confirmed that farmers still hold substantial onion stocks, estimating that only 20-30 per cent of the total produce has been sold. 

To address storage challenges, the department is promoting the use of airflow technology for onion preservation. Currently, 60 airflow machines are in use in Sujanagar, three in Pabna Sadar, and five in Santhia Upazila. Efforts are underway to expand this initiative officially.