Why do farmers face losses during Eid-ul-Azha?

Bilal, a 39-year-old farmer from Kishoreganj, is sitting in a cattle market in Dhaka on the morning of Eid-ul-Azha. The blank expression on his face, the bags under his eyes and his slouched shoulders make his fatigue and distress apparent. He could not enjoy Eid with his family, but that was not his concern. He came to Dhaka will four well-fattened cows, hoping to sell them for around Tk 1.5 million (Tk 15 lakh). But as he listens to the sound of the Eid prayer from a nearby mosque, he is coming to terms with the fact that all four of his cattle remain unsold. He has no idea what he should do next, how will he financially recover from this and how will he face his family when he returns with empty pockets and four unsold cows.

Although this is a fictitious account of an imaginary person, this is the fate many seasonal farmers suffer in the country during Eid-ul-Azha every year. Many small-scale farmers raise a small number of cows and take them to makeshift cattle markets in big cities during Eid-Ul-Azha, hoping to make a good profit. Some make good profits while some return home heartbroken.

Fisheries and livestock minister SM Rezaul Karim estimated that over 10 million (one crore) local cattle were ready to be sold as sacrificial animals during this year’s Eid-ul-Azha. The price of cattle is usually higher during the religious festival but still many farmers face losses and some even fail to sell their cattle.

This year, a large number of cattle remained unsold even after the 3rd day of Eid. This has become a common phenomenon during Eid-Ul Azha over the years. But why is it happening?

The first reason is a miscalculation that most rural farmers make. In the last few years, the number of agro farms has increased exponentially. In these farms, people can purchase cows worth Tk 3.6-4.0 million (Tk 36-40 lakh) a piece. And those cows are not only massive, but also have distinct characteristics. Some of them are imported or are pure breeds. Most importantly, such farms raise these cattle with only the uber rich as its target clients.

But rural farmers don’t realise the difference. They get influenced by the exuberant prices and get a fantasy of selling their cows at similar high prices. They don’t realise that there is very little chance that someone will buy their locally bred cattle at such a high price. And when they don’t adjust their expectations, they can’t attract customers and often end up with unsold cattle.

The second reason is not the farmers' fault as they simply find themselves on the wrong side of the evolution happening in the Eid-ul-Azha cattle markets. With the help of social media, people now can directly contact farmers all across the country and book their cattle way in advance. Moreover, the rise of internet and the Covid-19 situation has taught people to purchase cows and other animals online, which was unthinkable even a few years back. So now, many people buy sacrificial animals long before Eid and this results in fewer customers in the market.

But even if they fail to sell it to qurbani customers, why can't they sell it to butchers or to other farms? The reason lies in the question itself. People usually spend more on cattle than its regular price during Eid-ul-Azha. This makes farmers think that they can feed the cattle anything to fatten them in quick time and people will pay for the extra cost. Their lack of training makes them buy cattle for fattening at a higher price. Moreover, in search of high returns in a small amount of time, they prefer to fatten the cattle in only 2-3 months. That literally adds almost zero weight to the cattle. In training, it is always made clear that they need to keep the cattle for longer periods to achieve the desired profit. However, most rural farmers don’t have any knowledge about breed selection, which results in lower mass gain in cattle.

Last but not least, the cattle market price is very volatile during the last couple of days before Eid. Sometimes the price increases in folds while in other times the price tanks. So, the customers who like to play it safe don’t risk waiting for the last day, they purchase their cattle earlier.

Providing proper training to the root-level farmers is the only way to solve this crisis. The lack of training and planned farming should not be ignored anymore. Agricultural departments at the upazila and lower levels need to hold workshops and provide training to save thousands of farmers and their families from a financial crisis and increase their chances of making a profit.

*Latifur Rahman is an MBA student from the Institute of Business Administration, Dhaka University