Onion prices soar in Dhaka: Tk 70 to 120 per kg

A visit to several wholesale and retail markets in Dhaka on Thursday revealed that onion prices have jumped by Tk 40–50 per kg compared to the previous week. 

In retail outlets, onions were selling between Tk 110 and Tk 120 per kg.

Wholesale markets also saw a sharp surge. The price per palla (5 kg) has doubled — from Tk 260 to Tk 520 — with some traders charging as high as Tk 540 per palla, meaning wholesale rates have now crossed Tk 100 per kg.

Shariful, an onion trader at Uttar Badda kitchen market, said the wholesale price per sack had increased by Tk 26–28 per kg within just two to three days, forcing them to sell at higher rates.

Another trader, Aminul, noted that supply has dwindled compared to demand. “Prices have been rising since the last week of October and the trend continues,” he added.

Buyers expressed frustration over the sudden price hike, saying the abrupt surge has left them anxious.

“Just three days ago, onions were Tk 80 a kg. Now it’s over Tk 100. There’s no logic behind such a sudden spike,” said Fahmidul, a customer at Karwan Bazar.

Wholesalers claimed they were compelled to sell at higher prices as the per-maund rate had risen steeply. Some accused middlemen of hoarding onions to release them later at inflated prices.

“The price of onions has doubled within a week. We had to buy at Tk 4,000 per maund. Once we started selling those, the market price jumped overnight,” said Sanoar Hossain, a wholesaler at Uttar Badda.

Consumers, however, complained that the market monitoring is largely ineffective.

“Every time we hear it’s not the sellers’ fault, and that farmers don’t get fair prices either. Then who’s making the profit? It’s the government’s responsibility to find out, but they never seem to succeed,” said shopper Maymuna Akter.

Sources at the district level said most onions in Dhaka come from Pabna, Faridpur, and Rajbari, where prices have also risen to nearly Tk 100 per kg.

When asked about the soaring prices, Zahidul Islam, Senior Agricultural Marketing Officer at the Department of Agricultural Marketing, said the surge is seasonal rather than sudden.

“Between late October and early December, onion prices typically rise. Farmers have run out of stock — the supply now lies with wholesalers. Until new onions hit the market, prices will remain high,” he explained.

He added that import restrictions and higher onion prices in India have caused pressure at the Hili land port, which has also affected the domestic market.

Asked when prices might stabilise, Obaidur Rahman Mondol, Director of the Field Wing at the Department of Agricultural Extension, said farmers have started planting early varieties of onions, which are expected to reach the market by early or mid-December.

“There’s no fresh onion supply yet. Farmers are now cultivating murikata onions, which were planted in October and harvested in December,” he said.

But the farmers cultivating murikata onions are skeptical. Arshad Molla, a farmer from Sathia in Pabna, said they suffered losses last year. 

“We lost Tk 500–1,000 per maund last season. Even though onions now sell for over Tk 3,000 per maund, the price falls below Tk 2,000 as soon as the new harvest hits the market,” he explained.

“Many farmers didn’t grow murikata onions this year. And due to rainfall, those who did started planting late,” he added.

Despite the delay, the Department of Agricultural Extension does not expect a major impact on supply.

“The harvest may be delayed by only four to five days compared to last year. Murikata onions are planted on high ground, so there’s little risk of damage from waterlogging,” said Obaidur Rahman.

While traders attribute the shortage to halted imports, the Ministry of Commerce said any import decision will be made after reviewing the market situation.

A senior commerce ministry official, seeking anonymity, said, “The agriculture ministry has informed us that new onions will hit the market within two weeks. If that happens, we may not approve imports. Although Bangladesh produces around 3.5 million tonnes annually, nearly 25% spoils, which is why we usually import 500,000–700,000 tonnes every year.”

The Consumers Association of Bangladesh (CAB), however, believes the price hike is artificial and driven by manipulation.

“A vested group is taking advantage of the election and political instability to create an artificial crisis. If the government stops market manipulation, prices will drop automatically,” said CAB Vice President Nazer Hossain.

According to data from the Trading Corporation of Bangladesh (TCB), onion prices have surged by more than 50% in a month. 

Although prices remain lower than the same period last year, consumer rights groups have urged stronger market monitoring to rein in the hike, reports UNB.