Onion price surge costs Bangladesh Tk 3.5cr daily

Amid this price turmoil, the government’s ‘hesitation’ over import approvals has left both shoppers and farmers stranded, caught in a tightening grip of uncertainty and financial strain.

Consumer rights groups and market experts say the crisis is driven by delayed imports, weak market management and syndicate activities.

The Consumers Association of Bangladesh (CAB) has calculated that the country’s daily consumer demand for onions stands at around 7,000 metric tonnes. With prices rising from Tk 60–70 per kg to Tk 110–120 per kg in a short span, the extra daily burden on consumers’ pockets reaches Tk 3.5 crore.

Former director general of the Directorate of National Consumers’ Rights Protection and CAB president AHM Safiquzzaman criticised the government’s indecision. “The government is indecisive on onion imports. Meanwhile, consumers are losing crores of taka daily,” he said.

Commerce Adviser Sk Bashir Uddin said the government would allow imports if prices do not come down this week, but warned that local farmers could suffer losses as a result.

Safiquzzaman argued that import approval should have come in September–October. “By delaying imports until after the price surge, consumers are suffering. Limited imports earlier could have prevented the current shortage,” he said, adding that some unscrupulous traders are exploiting the situation while the Commerce Adviser searches for syndicates.

The CAB president also questioned the Agriculture Ministry’s claim of 3.5 million tonnes of onion production this year, saying it is unreliable. Currently, onions are scarce in farmers’ hands and largely held by wholesalers, leaving imports as the only viable solution.

On Thursday, the Bangladesh Trade and Tariff Commission (BTTC) recommended onion imports to the commerce and agriculture ministries, citing weak market management and manipulation by intermediaries as reasons behind runaway prices.

Data shows that while onion prices remained relatively stable over the past two to three months, they surged 37–42 per cent in the last week.

BTTC said the abnormal price hike indicates market mismanagement and syndicate activity.

Abdul Bayes, former vice-chancellor of Jahangirnagar University and an agricultural economist, said, “Without breaking syndicates and corporate oligarchies in agriculture, such dilemmas will recur. Unscrupulous groups exploit these situations at the expense of farmers and consumers.”

Most onion imports come from India, where prices are around Tk 16 per kg (USD 195 per tonne).

BTTC noted that even with a 10 per cent import duty, prices could drop by Tk 50 per kg domestically.

The Agriculture Ministry, however, said 75,000 tonnes of domestic onions would arrive within a week, with early December seeing the harvest of small ‘murikata’ onions.

“We have informed the Commerce Ministry that new onions will reach the market within two weeks. Whether any import decision has been formally made is not yet known to us,” said Additional Secretary Mahmudur Rahman.

Historical analysis by the Trading Corporation of Bangladesh (TCB) shows onion prices typically spike by over 100 per cent in November compared to March, providing opportunistic traders with profit margins while farmers lack produce.

In districts like Pabna, Faridpur and Rajbari, farmers have planted ‘murikata’ onions, with production costs around Tk 1,500 per maund.

Rokonuzzaman, a farmer from Goalanda in Rajbari, said, “Last year’s 'murikata' crop incurred losses. With Indian onions entering the market, the price per maund drops to Tk 1,200–1,400, forcing farmers to sell at a loss. This year, prices below Tk 2,000 per maund would still cause losses.”

Market stakeholders blame the ministry’s lack of foresight for creating a situation where consumers bear the brunt while farmers face uncertainty, reports UNB.