Empirical assessment of onion supply chain constraints in Bangladesh: A pre-covid to covid situation

In Bangladesh, Covid-19 has wrecked devastation on people's livelihoods and economies. It began with supply chain disruptions affecting a variety of agricultural products, particularly perishable ones. Onion, the most consumed species in Bangladesh and Asia is also fallen into that category. The goal of this study was to shed light on the current onion supply chain as well as the constraints faced by the actors in Bangladesh's major onion-producing area markets (i.e., Pabna, Rajshahi, and Chapainawabganj). The extent to which pre-existing constraints on market actors of onion were discovered and distinguished in pre-covid to covid conditions. The backward supply chain analysis revealed that the local market seller supplied the majority of necessary farm inputs (i.e., seed, seedlings, and fertilizer). Wholesalers, commission agents (aratdars), local wholesalers (beparies), and retailers were all involved in forward connecting. Producers received roughly 71% of the retail price (0.76/kg), followed by retailers (BDT 2.07/kg), wholesalers (BDT 1.22/kg), commission agents (aratdars) (BDT 0.85/kg), and independent wholesalers (beparies) (BDT 0.36/kg). Moreover, a constraint factor index and econometric analysis were utilized to determine the most critical constraints and their influencing factors. Obstacles to onion production and commercialization ranged from moderate (66%) to severe (33.5%), with a few being fairly severe (0.5%). The paucity of high-quality seed, the cost and difficulty of timely transportation, and the market's inaccessibility to government intervention were all significant drawbacks to increased onion output. The primary impediments to onion marketing were a lack of or inability to receive marketing expertise, frequent demand fluctuations, and an insufficient storage facility for other market intermediaries. The findings of the study can assist in establishing a dynamic policy framework that includes procedure for expanding market infrastructure, rehabilitating current onion market actors through adequate training, assuring information abundance, and rapidly addressing market mishaps for ensuring sustainability.


Introduction
Bangladesh is regarded a land of agriculture due to its monsoon climate and proximity to rivers. Among all minor crops, onion is the most critical seasonal minor crop, playing a critical role in human nutrition, generating rural and national income, and providing jobs. Onion's net return per hectare is significantly greater than that of its competitors. Additionally, onion cultivation is a highly successful crop due to its high commercial value in Bangladesh, with farmers selling an estimated 86% of their gross onion yield [1]. Despite the profitability of the domestic onion, annual output growth has remained at 1.85% from 2010-11 to 2019-20, up from 1.08% last year [2,3]. As a result, imports from India and other neighboring countries continue to dominate the Bangladesh market [1]. Bangladesh's agriculture ministry has an annual demand for onions of 2.8 million metric tons, showing an increasing demand [4]. Bangladesh produced 1954 thousand metric tons and imported 640.917 thousand metric tons of onion in 2019-20 [3]. Additionally, production was 1750 thousand metric tons last season, with a deficit of approximately 700 thousand metric tons compensated by imports [5].
Bangladesh is attempting to be self-sufficient in all areas of agriculture production, with an estimated arable agriculture land area of 7967 thousand hectares [6], or 1.86% of total nation land. However, a conundrum exists in guaranteeing food security for the world's large population of over 168 million people while boosting production in the face of declining arable land. Extending land potential through increased variety, increased input, and sophisticated technologies may be insufficient to sustain due to post-harvest loss. Reaching harvested goods from the farm gate to the consumer while preserving acceptable quality is always a challenge for agricultural commodities like onion. On the other hand, because of its high demand and price, onion draws producers and market participants [7]. Due to insufficient domestic onion production and Bangladesh's reliance on imports from neighboring countries, supply chain restrictions are more prevalent than post-harvest loss. The identification of constraints is critical for policy intervention. This study was undertaken in light of this issue aimingi. To illustrate the existing supply chain of onion along with market actors' margin and profitability.
ii. To identify the constraints of onion supply chain and extent of these constraints on market actors. iii. To compare the pre-covid to covid constraint scenario in onion marketing.
Previously, different research on onion marketing channels [7,8], onion pricing seasonality [9], post-harvest loss [7], and restrictions from the perspective of other countries [10] were done. Population and agricultural practices are changing in Bangladesh, as is the selling process. However, there is no current study on the perishable commodity marketing process and the constraints that market participants confront. Additionally, the epidemic may have altered the established system, forcing everyone to adapt in order to survive. Thus, it is critical to identify relative changes. Thus, the study aided in the development of a more complete understanding of the dynamics of the onion supply chain, production, and marketing constraints. Additionally, the study provided helpful information to farmers, processors, traders, and policymakers to assist them in developing onion production and marketing programs and policies.

Study area
The country's largest onion market was purposefully selected to provide the most accurate portrayal of the situation. The study was conducted in the Bangladeshi districts of Pabna, Rajshahi, and Chapainawabganj. The selection was justified by the fact that these districts ( Fig. 1) produce the most onion in Bangladesh [3,11].

Data
The study drew its findings on primary survey data. The research population consisted of households engaged in onion production or marketing and earning a living from this sector. According to the Bangladesh Bureau of Statistics, there were 761,180 households in the study area with farm holdings. Equation (i) was employed in conjunction with the sample determination technique of finite population correction [12][13][14].
The determined sample size was 302 for the total population, N = 761,180, with a 5% level of precision. As a result, 300 responses were randomly chosen, rounded up to eliminate selection bias. Thus, in the Covid-19 period, 66.67% were producers, 5% were local wholesalers (beparies), 6.67% were commission agents (aratdars), 6.67% were wholesalers, and 15% were retailers.
Draft interview schedules were created and pre-tested to ascertain the schedule's trustworthiness. The final two sets of interview schedules (for farmers and traders) were then generated after appropriate revisions, alterations, and changes. Finally, primary data were gathered in two phases, from February to April 2021 and again from June to July 2021, in chosen parts of the Pabna, Rajshahi, and Chapainawabganj districts. The data were processed and transferred to master sheets before being analyzed using STATA statistical software, (Release 16, College Station, Texas; STATA Corp LLC). The study incorporated humans as the respondent to obtain information on marketing system of onion. Although, this posed minimum risk, the research design was presented ahead of institutional level ethical approval committee. The affiliated institution of first and corresponding authors is Bangabandhu Sheikh Mujibur Rahman Agricultural University, Gazipur, Bangladesh. The Research Management Wing (RMW) is the responsible authority for examining and approving 'Ethical guidelines and Safeguarding Rules'. Upon applying for ethical approval for the inclusion of human participant responses in the research work, the Research Management Wing (RMW) investigated and approved the inclusion of human response through prescribed interview schedule with an approval number of [BSMRAU/RMW/CERTIFICATE/01(1740)].

Validity and reliability of survey constructs
The study employed a structured interview schedule and surveyed on the market participants of onion in the study area to illustrate the constraints in the markets. Multicollinearity issue was tested prior any other analysis and level of multicollinearity found below threshold level (<3.0) [15].

Content validity.
In the survey, Likert scale-based statements were incorporated to address the extent of constraints, from an individual viewpoint. The validity and reliability of the statements used for understanding the extents of constraints are crucial as the result of the study depends on it. The included constraints statements were included considering practical scenario of the onion market which ensures the face validity of the constructs. Alongside, a correlation of all statements [Appendix 1- Table A-1] indicates all variables are significantly correlated. This explains the internal validity of the constructs in presenting the obtained information from the survey.

2.2.1.2.
Reliability. The reliability of using the statements in this study was analyzed using the Cronbach's alpha value [Appendix 1- Table A-2]. The alpha value shows the internal consistency among the constructs [16].
The analysis result indicated in Table 1, the Cronbach's alpha value of the constructs 0.8873 represents a better consistency, where it is proposed that a range between 0.7 and 0.9 is a good sign of internal consistency [16][17][18][19][20], and it remains reliable for all constructs [Appendix 1- Table A-3].

Supply chain, benefit-cost, and market margin analysis
The onion supply chain construction in the study area initiated with a sampling design. Through an in-depth literature research confining published studies on onion marketing system in Bangladesh [7,[9][10][11][21][22][23], the study obtained potential market actors. A preliminary survey identified particular intermediaries who functions in the study area. The final survey ultimately validated the effective market participants of supply network through specific question on marketing system and participants. Along with market participants, the study investigated onions' farm gate price, price spread, and price management system up until the consumer purchase point. This whole marketing network is made up of a wide variety of activities, people, entities, data, and resources. Equation (ii) was used to conduct a benefit-cost analysis of onion growers.

Benefit cost analysis
Where, Total Gross Return (TGR) = [Total quantity sold × Price of product] + Revenue from by product

Total Variable Cost(TVC) = Cost incurred due to cultivation of onion
Also, the net return was calculated by deducting all costs (variable and fixed) from the total gross return.
Net return, π (BDT / Unit) = Gross return -(variable cost + fixed cost) After that, the marketing margins and net margins of different intermediaries were estimated using the following equations.

Gross marketing margin = Sales price − Purchase price (iii)
Net marketing margin = Gross margin − Marketing cost (iv)

Constraint measurement
The constraints imposed by smallholder onion market participants were investigated by first identifying and tracking the issues confronting growers and traders. A four-point rating scale was used to ascertain the extent to which market actors encountered limitations. The study identified twenty-eight distinct constraints for onion growers and seven constraints for onion merchants through a review of the literature. The four-point scale (high, medium, low, and not at all) was assigned a score of 3, 2, 1, 0. For farmers, the overall extent score varied from 0 to 84, with above 63 indicating high, 42 to 63 indicating medium, 21 to 42 indicating low, and the remainder indicating no level of constraint at all. This scale was used by market merchants and ranged from 0 to 21. A constraint facing index (CFI) was developed (using equation vi) to determine the most critical constraint [24,25].
where, C h = number of high constraint response, C m = number of medium constraint response, C l = number of low constraint response, C n = number of not-at-all constraint response, N = total response, CFI= Constraint Facing Index.

Onion supply chain in Bangladesh
The purpose of supply chain analysis is to provide a systematic understanding of the movement of commodities and services from their origin to their final destination. The onion supply chain in Pabna, Rajshahi, and Chapainawabganj districts of Bangladesh is depicted in Fig. 2.
A well-functioning agricultural supply chain includes members on both the backward and forward sides. Local market vendors, formal and informal loan providers, cooperatives, and certain government organizations were identified as backward participants in the onion supply chain. Local seed merchants were typically the sole source of seed and seedlings for farmers in the study areas. Occasionally, credit issuers supply a tiny amount (2%) of seedlings. Irrigation, a substantial onion input, was arranged through local cooperatives (57%), Bangladesh Agricultural Development Corporation (23%), and private agreements  (20%) of other accessible local sources. As with seed and seedlings, farmers obtained essential fertilizer from local fertilizer vendors (96%) and certain businesspeople (4%) who also acted as loan providers.
Additionally, credit lenders supplied 49% of other essential agriculture inputs, while only 6% came from local market vendors. The remainder (45%) of farm inputs came from a variety of sources within the research areas.
As seen in Fig. 2, the onion supply chain's forward linkage involved a local wholesaler (bepari), a wholesaler, a commission agent (aratdar), a retailer, and a consumer. Different supply chains existed in the research area's onion marketplaces. The channel was distinct due to the market participants' disparate product flows. Certain channels were direct, requiring only two market intermediaries to connect producer and customer. Restaurants were key buyers in the study locations since they were not end consumers but process the onion for end consumers as meals.
Farmers seem to have sold a substantial amount of onions to the wholesaler (47.67%), followed by the local wholesaler (bepari) (19.18%), and commission agent (aratdar) (17.81%). Additionally, a substantial amount was sold directly to the penultimate market participant, the store (15.34%). Additionally, of the total onion accumulated, the local wholesaler (bepari) sold the majority (80%) to local commission agents (aratdars), who did not make the purchase but handle the sale to other dealers on a fixed commission basis. Additionally, the local commission agent (aratdar) sold the gathered produce to wholesalers (56.67%), merchants (23.40%), and restaurants (6.67%). Additionally, wholesalers sold 52.38% of onions to regional commission agents (aratdars), 4.76% to retailers, and 42.86% to customers. However, retailers sold the majority of their products (75.93%) to customers and the remainder of their onion (24.07%) to restaurants.

Benefit-cost analysis of onion producer
The overall cost of onion production included both permanent expenditures such as land use and machinery acquisition, as well as variable costs such as seedlings, soil preparation, fertilizer and pesticide prices, labor costs, irrigation costs, electricity bills, and transportation costs. According to Table 2, onion growers' average total variable costs were BDT 14.20 per kg, while their average total fixed costs were BDT 1.95 per kg. As a result, the average gross return to onion farmers in the research areas was computed at BDT 16.91 per kg, including expenses.
As a result, growers earned an average net profit of BDT 0.76 per kilogram of onion. Additionally, onion producers received approximately 71% of the price paid by consumers for each kilogram of onion (Table 2). Additionally, the benefit-cost ratio for onion growers was calculated to be 1.19, meaning that they earn an equivalent return on investment of 1.19-unit money for every unit of money invested in onion production. It appears that investing in onion cultivation is financially viable.

Marketing margin of different actors in the onion supply chain
In two onion-producing regions of Bangladesh, Table 3 shows the average purchase price, sale price, gross margin, marketing cost, and net margins of several onion supply chain participants. The findings indicate that, of all market participants, onion retailers were the most efficient, with the lowest marketing costs (BDT 1.88 per kg) and the best net returns (BDT 2.07 per kg).
Wholesalers, on the other hand, gained the subsequent net margin (BDT 1.22 per kg) from retailers' later marketing costs (BDT 1.90 per kg). Additionally, the local wholesaler (bepari), a critical market player and the initial point of contact for farmers with the market, earned a minimum market margin (BDT 0.36 per kg). On the other hand, although incurring the greatest marketing costs of all actors (BDT 2.97 per kg), the commission agent (aratdar) earned close to the final market margin of BDT 0.85 per kg, which was more than that of local wholesalers (beparies).

Onion market constraints
Getting onions from the producer field to the consumer plate is not a simple feat. Throughout the process, many active and passive difficulties occur, resulting in financial losses for the actors. The study found major restrictions faced by onion producers (Table 4) and associated market participants (Table 5).

Extent of constraints faced by onion farmers
Farmers faced a variety of challenges when growing onion: insufficient extension support and a dearth of onion production training may be the primary obstacles (Table 4). Constraints listed according to CFI value; the most critical constraint was a scarcity of high-quality onion seed (CFI 2.875). Additionally, other research discovered that farmers lack access to high-quality onion seed, resulting in reduced yields [26]. According to early research, farmers in the study area saved and used their stored seed for the following year's cultivation [27,28], sometimes referred to as local onion, without knowing the quality. Although the government has recently explored a four-year project to support onion growers through a self-sufficiency plan that includes free seeds and fertilizers based on the size of the farmer's land [29,30], the initiative has yet to bear fruit. However, farmers continue to encounter significant challenges regarding the availability of high-quality seed. Onion crop is harmed by unregulated pesticide and insecticide use throughout the season and lack of pest management expertise among onion farmers in the study areas made it as the second most significant constraint on onion production (CFI 2.71). Additionally, unregulated pest management reduces yield, degrades the soil, and has a negative impact on the environment [31]. Another critical restraint cited by onion farmers was Table 2 Benefit-cost ratio and net return of onion producers in selected areas of Bangladesh. (1 BDT = 0.012 USD as of June 2021). insect damage to the onion. Insects, both beneficial and detrimental, affect output. Pollinator insects (honeybees, blowflies, and houseflies) are critical for increased seed sets and yield enhancement [32]. Excess fertilizer application repels pollinating insects, reduces output, and draws pests to onion fields [33]. Since organic pest control methods (i.e., IPM) are not commonly used, inorganic pesticides were employed. However, the pesticide price is prohibitively expensive for farmers to profit from onion farming. This one has been identified as a significant constraint for onion farmers (CFI 2.04). Irrigation availability continues to be insufficient for onion farmers  in the study region. Certain rich farmers own low tubewells (LTW) and rent water at a premium to other farmers. As a result, most farms must rely on their water source for timely irrigation, regardless of the cost. The issue of irrigation facilities was also a significant limitation for onion farmers. Additionally, the absence of timely government support (CFI 2.28), the high cost of high-quality seeds (CFI 2.08), and managementrelated information on onion pest and soil management (CFI 2.14) were critical for onion production. Farmers, have discovered that a cheaper price for their gathered produces is most effective, even when production costs are higher.

Extent of constraints faced by onion market actors
The onion production to consumption goes through several stages, and every actor in these stages faces some sort of problems while functioning. Observed constraints were ranked based on their CFI value. Table 5 revealed that onion market actors' most critical constraint was not having any training relevant to their activity (CFI 1.93). Although market actors had enough formal education (Table 4) yet they were not considered for any training by the government [34] or other organizations [35]. If they received some training, their belief is that market operation would be smoother. Also, understanding the magnitude and direction of market forces would make it easier for them to make the necessary decisions. The price of locally produced onion was comparatively higher than imported onions [36,37]. The consumers of Bangladesh are diversified, and almost one-fifth of its population lives below the poverty line [38]. Besides, in a country where the average wage per month is BDT 15100 (USD 178.04), people tend to buy commodities at a cheaper rate unless found otherwise [39]. As a result, the demand for own produced onion encountered a lack of demand, thus the constraint ranked the second most crucial (CFI 1.89).
Market intermediaries, who either purchase and store to sell later at higher prices or sell on commission, were both vulnerable to weather conditions. Moreover, onion, a highly perishable vegetable, requires cold storage for longer hoarding, which is inadequate in Bangladesh. Not all traders had the accessibility to such facilities and go through colossal wastage. Besides, lack of sufficient and accurate market information along with minimum know-how of onion-processing also disrupted onion supply chain from time to time.

Impact of Covid-19 in existing constraints scenario
Covid-19, the global pandemic, is a watershed moment in terms of assuring onion supply across the country. Along with standard restraints, the most significant constraints noticed by market actors engaged in onion production, found in the research area during covid and pre-covid periods are documented for comparison. Post-covid limitations imposed an additional hardship on farmers and traders engaged in the onion business. The major constraints discovered during the field study are also contrasted throughout a two time periods (Tables 4 and  5).
Assessing the constraints identified through field survey on the farmers of Pabna, Rajshahi, and Chapainawabganj, it revealed that onion growers were frequently impacted by a shortage of high-quality seed, pest management issues, insufficiency of farm machinery, inadequate government support, and a lack of coordination among onion farmers. When the pandemic struck the country and the entire country took a general holiday, the economic system underwent dramatic changes. Farmers were harmed by a deficient marketing system at the local (upazila) level, and the lack of a transit system resulted in increased carrying costs for farmers. This appears to be an impassable barrier for farmers of Pabna, Rajshahi, and Chapainawabganj. Even a price shortfall of onion was observed in comparison to regular times.
Owing to the fact that all traders conduct business with Bangladesh's capital, Dhaka, and other neighboring districts, they often rely on longdistance transportation, which was rare due to the covid situation. Generally, commission agents and local wholesalers (beparies) take an active role in ensuring the onion's ongoing supply to all markets.
Farmers lacked transportation during this pandemic to carry onion from farm gate to large markets. Thus, a national-level onion crisis occurred on the local market. Additionally, the onion syndicate of capital and enormous markets, which fabricated a virtual shortage in market supply in order to maximize profit by selling at higher rates, was widely mentioned over time by consumers and other local traders. The limitation on onion imports exacerbated market volatility in this pandemic context [40]. Due to national covid restrictions, the market did not operate consistently in the study area, and farmers were unsure whether or not to sell in local marketplaces. Neither the cost of transportation nor the lack of a storage facility prevented them from selling their produce in the future. By incurring additional transportation costs and navigating the associated red tape, they were able to sell their onion at a lower price than in the pre-covid era. While farmers could manage natural limits in the past (i.e., paste, illness, and low yield), in the post-covid era, artificial restraints economically pushed them.
Earlier onion traders, like farmers, were disgruntled by being overlooked for training, having limited market knowledge available, and importing onion from other countries. They were in severe conflict with onion, a perishable item, in a post-covid situation that is still happening. While transportation may be managed, the time and cost savings are nearly doubled. In general, market supply was disrupted as a result of producers' inability to reach commission agents (aratdars). Additionally, the market time was cut, resulting in a decrease in market sales. Additionally, packaging materials became rare during the epidemic due to lockdown and were pricey even when managed. Eventually, traders were either making a loss or making a minimum profit, as they were forced to sell below their purchase price to prevent decaying.
The covid epidemic is suffocating every stakeholder in the agricultural industry. Along with the pre-covid limitations, any new limits exacerbate suffering and have a detrimental effect on both individual and national economic progress.

Conclusion
Bangladesh's key onion marketplaces are managed through backward-forward linkage participants for ensuring onion production and marketing. Although the study found that onion farmers earned approximately 71% of the amount customers pay for a kilogram of onion, the cost and labor involved in production were enormous. As a result, they had little profit remaining at the end of the day. Additionally, the study discovered several natural and some artificial constraints were continually exerting pressure on onion producers and traders. Nonetheless, the global pandemic compounded the burden. Onion producers and traders were economically marginalized in this environment.
There is still much room to boost onion productivity. Numerous individuals are employed in the onion production and marketing industries in the study areas. With the development of a suitable market and communication infrastructure, these workforces might become an asset. Farmers and market actors, in particular, might profit financially from receiving correct training and market intelligence. Additionally, during the covid time, minimal or collateral-free credit issuance is important to assist vulnerable farmers, particularly merchants. After the covid period, the respective authorities shall issue a proper policy guideline for effective market management. Finally, as marketing opportunities, constraints, and solutions to the onion supply chain in Bangladesh are recognized, our government must make some effective decisions to ensure the country's self-sufficiency in onion supply.

Declaration of competing interest
The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.

Data availability
Data will be made available on request.