Artificial crisis drives onion prices up despite ample supply
Muhammad Ayub Ali :
The price of onion has increased in the market round the week due to manipulation and creating an artificial crisis for importing approval, though there is no shortage of onion in the supply, says a Commerce Ministry observation.
Bangladesh’s annual onion demand stands at approximately 2.6–2.7 million tonnes, while last year’s domestic production exceeded 3.8 million tonnes.
However, weak post-harvest management leads to wastage of over 25 percent of the crop every year, forcing imports later in the season to balance supply and stabilise prices.
Currently, around 3.5 lakh tonnes from last season remain in stock.
The Agriculture Ministry expects the new harvest to reach the market soon, with roughly 1 lakh tonnes arriving this month and another 2.05 lakh tonnes next month.
Officials warn that opening imports now would undercut farmers bringing fresh produce to market, potentially causing financial losses.
Meanwhile, onion prices in India have fallen to around 8 rupe (Tk12) per kg, and large quantities have been stockpiled near border land ports.
Observers allege that certain traders are exploiting the situation to drive up local prices in Bangladesh and profit from imports.
While the Tariff Commission acknowledges this artificial crisis, it has suggested “limited imports” to reduce the influence of middlemen and protect consumers from exorbitant prices.
A joint meeting of the Commerce and Agriculture ministry’s last week decided to temporarily suspend imports, citing the risk that Indian traders would benefit at the expense of local farmers.
To curb price manipulation, monitoring drives have been launched in key onion-producing districts such as Faridpur and Pabna.
Commerce Ministry sources said wholesale prices have already dropped by more than Tk250 per maund since the operation began last Tuesday.
Commerce Secretary Mahbubur Rahman stressed that the price surge is manipulation-driven rather than due to a supply shortage, adding that monitoring will continue until retail prices reflect the changes.
Retail data from the Trading Corporation of Bangladesh (TCB) shows onion prices in Dhaka at Tk110–120 per kg on Sunday, compared with Tk70–80 a week earlier.
Commerce Adviser Sk. Bashir Uddin said on Sunday that the government is ready to permit onion imports if prices do not fall to a reasonable level by the end of this week.
He made the remarks while speaking to reporters at the Commerce Ministry in Dhaka amid the recent nationwide surge in onion prices.
The Tariff Commission has reiterated that middlemen are taking advantage of the situation, and while selective imports could ease pressure, robust domestic monitoring remains essential.
Agricultural economist Prof Mohammad Jahangir Alam of Bangladesh Agricultural University noted that onion prices traditionally rise during this period.
He emphasized that proactive import planning and better post-harvest management could have prevented the current spike, though targeted imports may still help stabilise the market and protect both farmers and consumers.