Rising Onion Prices and the Struggle for Stability
In a dramatic turn of events, onion prices in Bangladesh have nearly doubled within just 10 days, creating a financial burden that costs consumers an additional Tk 3.5 crore every day. This sharp increase has left both shoppers and farmers in a state of uncertainty, with no clear resolution in sight.
The situation has been exacerbated by the government’s hesitation to approve imports, which has further deepened the crisis. Consumer rights groups and market experts attribute the price surge to delayed imports, poor market management, and the activities of powerful syndicates.
The Consumers Association of Bangladesh (CAB) estimates that the daily demand for onions in the country is around 7,000 metric tonnes. With prices rising from Tk 60-70 per kg to Tk 110-120 per kg, the extra cost on consumers’ pockets amounts to a staggering Tk 3.5 crore per day.
AHM Safiquzzaman, former director general of the Directorate of National Consumers’ Rights Protection and CAB president, criticized 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 stated that the government may allow imports if prices do not come down this week, but warned that this could lead to losses for local farmers.
Safiquzzaman argued that import approvals should have come earlier, in September or October. “By delaying imports until after the price surge, consumers are suffering. Limited imports earlier could have prevented the current shortage,” he added. He also highlighted the role of unscrupulous traders exploiting the situation while the Commerce Adviser searches for syndicates.
The Role of Market Management and Syndicates
The Bangladesh Trade and Tariff Commission (BTTC) has recommended onion imports to the commerce and agriculture ministries, citing weak market management and manipulation by intermediaries as key reasons behind the 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 noted that the abnormal price hike indicates market mismanagement and syndicate activity.
Abdul Bayes, former vice-chancellor of Jahangirnagar University and an agricultural economist, emphasized that without breaking syndicates and corporate oligarchies in agriculture, such dilemmas will recur. “Unscrupulous groups exploit these situations at the expense of farmers and consumers,” he said.
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.
Government Response and Future Projections
The Agriculture Ministry claimed that 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 that 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.
The Path Forward
With the current crisis highlighting systemic issues in the agricultural supply chain, there is a growing call for more proactive measures from the government. Import approvals, better market management, and stronger regulatory actions against syndicates are seen as essential steps to stabilize prices and protect both consumers and farmers.
As the situation unfolds, all eyes remain on the government’s next move, hoping for swift and effective solutions to ease the burden on the public and ensure fair practices in the market.