Who’s pocketing the profit while onion farmers wait for fair prices?

“The government’s statistics need a serious review. Accurate data on production, supply, and demand is essential—not just for onions, but also for potatoes, rice, and other essentials,” says Prof Saiful

Every year during Ramadan, onion prices tend to fluctuate, but this time there was an exception.

Consumers remained at ease with prices throughout that month; however, the situation changed post-Ramadan, with prices rising.

This week, onion prices have increased by Tk 10 to Tk 20 per kg. While prices soar, many farmers are claiming losses.

This raises the question—who's pocketing the real profits?

On Sunday, at Karwan Bazar and Mohakhali kitchen markets in Dhaka, onions were selling between Tk 50 and Tk 60 per kg, up from Tk 35 to Tk 40 just a week earlier.

Sabuj, a vendor who identified himself with a single name, said: “The onions have moved from farmers’ fields to cold storage. Prices were low when they were still in the fields.

“Now the hoarded stock is being released at higher rates.”

Al Amin, a seller at Mohakhali market, echoed the same. “The onions are no longer with the farmers. Large stockpilers now control them in cold storage”, he said.

“If Indian onions don’t arrive, prices could go even higher.”

HOARDING BEHIND THE PRICE SURGE

From farmers to wholesalers, everyone has been stockpiling onions after harvest.

With limited stock reaching the market, farmers say hoarding is largely driving up the prices.

In Rajbari, farmers are already cultivating jute and sesame after harvesting onions, but many still have stocks stored at home.

Only those with high yields are currently selling at local markets.

On Wednesday, at Chandoni onion market in Rajbari Sadar Upazila, farmers were seen bringing onions on their heads, three-wheelers, battery-run rickshaws and even horse-drawn carts.

Depending on quality, the onions were being sold at Tk 1,800 to Tk 2,000 per maund – a rise of Tk 400 to Tk 500 from the previous week, leaving many farmers satisfied.

Asked why prices are rising before the season is even over, Chandoni-based onion farmer Afzal Hossain said, “Before Eid, I sold onions for Tk 1,100 to Tk 1,200 per maund.

“They were fresh then, so it took less quantity to make up a maund. Now that the onions have dried, more weight is needed.”

“Also, farmers like us are storing what we can at home, he added. “ We plan to sell when the timing is right and prices are better. This is limiting supply in the market.

“Plus, the ‘stockpile parties’ are active – they buy at whatever price is going and remove the onions from circulation. That’s why prices are up,” he explained.

Sulaiman Pramanik, another farmer, said: “The main reason is that fresh onions are no longer available. Farmers have stored enough at home.

“With limited supply, large traders are also buying to stockpile, and they’re accepting current prices without hesitation.”

Motiar Rahman Munna, a trader at Chandoni Bazar, said: “There are no onions in the fields now. Farmers are keeping them at home. The market supply is lower than demand.

“Where 500 maunds are needed, only 300 are arriving. That’s pushing up prices.”

In Jhenaidah, prices have also gone up. Farmer Nuruzzaman Pappu from Monoharpur cultivated onions on 15 bighas, or 2.01 hectares.

He sold 100 maunds at Tk 1,450 each early on and stored the rest for later sale.

Farmer Shamsul Islam from Bhatbaria stored half of his 200-maund harvest.

COSTS OF ONION FARMING

According to farmers, onion cultivation costs per bigha of land range between Tk 50,000 and Tk 70,000 on average, depending on the location.

The expense is even higher if land is leased.

Rubel Ahmed, a farmer from Natore's Naldanga, said: “The pests require treatment every two days. Leasing the land costs between Tk 30,000 and Tk 50,000, with some plots costing as high as Tk 55,000 to Tk 60,000.

“For one bigha, around 9 to 10 kg of seeds are required, priced at Tk 5,000 per kg (compared with Tk 2,500 to Tk 2,800 per kg at other times).”

He added, “You pay Tk 50,000 just for leasing. Then seedlings, labour, fertilisers and pesticides cost Tk 30,000–40,000. Labour for planting seedlings costs another Tk 12,000.

“If a bigha yields 60 maunds of onion, the cost per maund stands at Tk 1,500–2,000. But when harvested, the price was only around Tk 1,200 per maund.

“Even Murikata (early harvest) onions sold for Tk 500–600. Although prices have slightly increased to Tk 1,500–2,000, we need Tk 4,000–5,000 per maund to make a profit.”

Jahurul Islam, a farmer from Thakur Lakshmikul in Naldanga, said: “It costs around Tk 23,000 to plant and harvest one bigha of onions. Medicine expenses add up to Tk 20,000, making it a total of Tk 43,000.

“If the land is leased, the cost can go up to Tk 60,000 per bigha. This year, around Tk 60,000 to Tk 70,000 is spent on onion farming,” he added.

LOSSES AND DEBT: FARMERS TRAPPED

In a tragic case, an elderly onion farmer in Rajshahi took his own life, allegedly due to losses from onion farming.

Across onion-growing districts, farmers report mixed outcomes—some profitable, others burdened with debt due to poor planning or lack of experience.

In Natore, prices recently increased after earlier discontent among farmers. Yet profits remain slim or non-existent.

Ashraful Hossain, a trader from Natore, said: "A month ago, onions were being sold for Tk 700 to Tk 1,100 per maund in Naldanga, Thakur Lakshmikul, and other markets.

“Now, the price is Tk 1,700 to Tk 2,000 per maund. If Indian onions stop entering the market, the price could rise further."

Despite the price increase, farmers' profits remain minimal.

Jahurul shared that despite investing heavily, many got poor returns. Driven by the hope of high prices, even rickshaw-pullers leased land to farm onions, only to face losses.

He cited a relative, Md Mintu, who returned from Dhaka, leased four bighas, bought expensive seeds, and ended up losing money due to high input costs.

The pressure of loans has left many farmers struggling to make ends meet.

Jahurul said: "Our village is overwhelmed with loans. There’s no shortage of people lending money at interest rates. Some take loans from NGOs, but not everyone can repay them. Those who cannot often flee to Dhaka."

Another farmer, Shahidul Islam from Naldanga, echoed similar concerns. “Some farmers with capital lend money at interest. Others lease land for Tk 30,000 and sub-lease for Tk 40,000—just to make a profit. It’s lease on lease.

“The ones making losses are fleeing to Dhaka.”

When asked about the main issues, he said: “Seed, fertiliser and pesticide prices are too high. If those came down, and if onion prices increased a bit, farmers could at least break even.”

Another farmer, Hazrat Ali, said he spent Tk 80, 000 to 90,000 but recovered only Tk 60, 000 to 70,000.

OVERPRODUCTION VS ACCURATE DATA

According to Natore’s Department of Agricultural Extension (DAE) Deputy Director Md Habibul Islam Khan, while the target for onion cultivation in the district this year was 4,060 hectares, actual coverage reached 7,050 hectares.

Due to favourable weather and absence of pests, both production and supply have increased.

Asked how to ensure fair prices for crops, Bangladesh Agricultural University agricultural economist Prof AHM Saiful Islam said: “We’ve long struggled to determine actual supply and demand.

“Because of this, off-season overproduction often leads to price hikes or shortages.”

He added, “I think the government needs to review its existing data. Proper statistics on production, supply and demand are crucial—not just for onions, but for potatoes, rice and other crops.

“With accurate data, government planning would be easier, and price instability could be addressed.”

On middlemen, he noted: “In our research, we found that direct marketing sometimes increases costs. Some middlemen are necessary in the supply chain—but we must ensure the chain isn’t too long.”

“The market must be monitored to function properly as a competitive market. It must not turn into a monopoly. With proper oversight, competition can help ensure fair prices,” he concluded.

LIMITED PROFIT IN SOME DISTRICTS

While farmers in Natore are yet to see profits, growers in Rajbari district say although the gains are limited, they are not incurring losses either.

Visits to local markets reveal that onion prices have increased by Tk 10 to Tk 15 per Kg.

Currently, onions are being sold at Tk 50 per kg in retail markets, compared with Tk 35 last week.

Imran Khan, an onion farmer from Kalukhali Upazila, explains that onion seeds cost around Tk 20,000 per bigha.

Labour costs are an additional TK 10,000, and expenses for land preparation, fertilisers, pesticides, and irrigation add another Tk 20,000, bringing the total cost to Tk 50,000 per bigha.

If leasing the land, an additional Tk 30,000 is required.

The farmer said, "Good yields can result in 70 to 75 mounds of onions per bigha, and lower yields would be around 55 to 60 mounds. At an average price of Tk 15 per mound, 60 mounds bring in Tk 90,000, and 70 mounds bring in Tk 105,000.

“Therefore, a farmer should not face any loss. There might be a small profit after covering production costs, but a loss is unlikely."

Imran believes that farmers in Rajbari do not engage in "Dadon" (loan) practices, and no loans are provided by NGOs for onion farming.

Farmers typically buy fertilisers, pesticides, and other materials on credit with the understanding that they will pay once the onions are sold.

In response to claims that farmers have faced high costs and losses, he says he has kept records of the costs for farming on more than three bighas of land.

"I think most farmers do not maintain records, which leads them to believe that their costs are higher than they are," he adds.

Golam Rasul, the district training officer at DAE’s Rajbari office, said 14 percent of the country's total onion production comes from Rajbari.

This year, onions have been planted on 37,283 hectares of land in the district, including 5,870 hectares of "Murikata," 31,271 hectares of "Hali," and 142 hectares of "Kodom" onions.

The target for onion production is 525,000 tonnes, and at current market prices, farmers are not facing losses.

In Jhenaidah, another district seeing record onion cultivation this year, 13,712 hectares of land have been used for onion farming.

Locally, domestic onions are being sold at prices ranging from Tk 1,800 to 2,000 per mound, while the Indian variety "Sukh Sagar" is priced between Tk 1,400 and 1,500 per mound.

Sasty Chandra Roy, the deputy director of Jhenaidah DAE, noted that 80 percent of the onion crops this year have had good yields, while 20 percent have seen lower yields.

Those who adopted late planting techniques have experienced reduced yields.