Bumper harvest, but farmers face loss

A video clip of aggrieved farmers destroying their cauliflower in the field as they fail to recover even the basic costs of production is doing the rounds on social media. Mainstream media is also abuzz with stories of farmers not harvesting some of their winter crops due to a lack of fair prices, with some even resorting to feeding their produce to livestock. Last week, farmers also staged rallies in different parts of the country including Pabna and Meherpur, demanding fair prices for their crops. Moreover, they are reportedly planning to organise a protest in Dhaka to draw the government's attention to their massive losses despite a bumper production of winter vegetables.
Added to the farmers' woe is the exploitation by middlemen and ransom seekers. While consumers in Dhaka are paying Tk 15-20 for a single cauliflower, farmers are receiving a fraction of this price. In major agricultural production hubs in northern districts, each kilogram of cauliflower is reportedly being sold wholesale for a mere Tk 1-2, far below the production cost of Tk 5-6 per kilogram. Is this the reward for their hard work and investment?
This situation underscores the urgent need for a comprehensive farmer protection programme to safeguard farmers' interests. A significant portion of farmers' woes stems from the lack of storage facilities and efficient distribution systems. Notably, Bangladesh's current storage facilities are built with a focus on rice and potatoes, leaving limited space for perishable goods such as vegetables, fish, and milk. Farmers face substantial losses, particularly during peak seasons. According to an estimate, about 30 per cent of Bangladesh's fresh produce is lost annually due to inadequate storage facilities. Fruits, vegetables, onions, milk, fish, etc. often perish at various stages of the post-harvest supply chain, resulting in millions of tonnes of food loss each year.
Several policy interventions could alleviate these challenges. First of all, the government can think of introducing a Minimum Support Price (MSP) for main verities of crops each season. MSP is the minimum price paid by the government when it procures any crop from the farmers to protect them from price fluctuations. MSP is set considering production costs, market demand, and other economic factors. Successful implementation of an MSP can ensure financial security for farmers and shield them from losses during market downturns.
To effectively implement the MSP mechanism, agricultural collection centres, along with specialised cold storage facilities, should be established at the upazila level or near major production hubs. These centres will collect surplus crops from farmers based on the MSP or prevailing market rates. Collected produce can then be supplied to other areas, stored in cold storage facilities, or exported. Establishment of such centres will help reduce the influence of middlemen.
The authorities should also incentivise private-sector investment in food processing. Processing centres can further address price drops due to oversupply by converting excess produce into value-added products. For instance, surplus tomatoes can be processed into sauces or purées for domestic and export markets. Supporting young entrepreneurs in agro-processing through training and incentives can make this initiative more dynamic.
Bangladesh's agricultural sector holds immense potential, but systemic challenges, including price exploitation and post-harvest losses, continue to burden farmers. Addressing these issues through well-designed policies, and efficient storage and transport facilities can transform agriculture into a sustainable and profitable venture.

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