Domestic onion prices have begun to fall nearly two weeks after imports from India resumed following an eight-month halt.
On 12 August, Commerce Adviser Sheikh Bashir Uddin announced that onion imports would be allowed to control the rising prices in the country. He said import approvals will be granted soon to stabilise onion prices.
He mentioned that onions will be imported from the country where they are available at the lowest price, and the quantity imported will be as needed.
Following the announcement, onion imports from India have commenced through the Sonamasjid Land Port in Chapainawabganj. On Thursday, four trucks carrying a total of 100 tonnes of onions arrived at the port.
Eight months earlier, the Indian government had halted onion exports through this port.
Panama Sonamasjid Port Link Limited is managing imports, said the company’s manager Mainul Islam.
The import has made a sudden impact on the country’s domestic market. Sources said that the wholesale price of onions on Tuesday was Tk75 per kilogram which dropped to Tk65-66 per kilogram by Friday, reflecting the trend over the past three days.
However, retail prices have remained steady at Tk75-85 per kilogram. Wholesalers said that farmers and district-level traders had released fewer onions from their stocks, contributing to the recent price surge. They expect retail prices to start declining soon as well.
Meanwhile, in the capital and several other districts, local onions are being sold at Tk85-90 per kilogram, while district-level prices range from Tk70-75 per kilogram.
Many consumers have criticised the sudden hike of onion price by Tk20-25 per kilogram as unjustified, especially since the onion harvest was completed in April.
According to the Trading Corporation of Bangladesh (TCB), retail onion price in Dhaka last Tuesday was Tk75-85 per kilogram, marking a 33% increase compared to a month earlier, while a year ago, the same price range was Tk110-120 per kilogram.
Onion production zones
Price of onion per-maund (40 kg) fell by Tk200-300 in Rajbari and Faridpur, the two major onion-producing districts in the country, following the import announcement. On Tuesday, prices ranged from Tk2,800-3,000 per maund, dropping to Tk2,500-2,800 per maund in the area on Friday.
Shahadat Hossain, senior marketing officer of the Faridpur Department of Agricultural Marketing, said prices are expected to decline further. Farmers and large traders in Rajbari and Faridpur are yet to release sufficient onions to meet market demand.
He added that government-established model storage houses in these districts hold significant onion stocks, and proper monitoring could prevent artificial shortages.
According to sources, across seven southern, western, and northern districts, 285 model storage houses have a combined capacity to hold over 10,000 tonnes of onions. The districts include Kushtia, Jhenaidah, Magura, Faridpur, and Rajbari in the southwest, and Rajshahi and Pabna in the north. Each storage house is designed to hold 250-300 maunds (10-12 tonnes) of onions; however, in some cases, farmers have stocked nearly double or even triple this amount.
Meanwhile, the National Consumer Rights Protection Directorate has launched nationwide market monitoring.
Afroza Rahman, deputy director (Training & Communication), told the newspapers that regular field inspections are being conducted to stabilise prices and ensure normal supply.
Contacted on Friday, Agriculture Secretary Dr Emdad Ullah Mian told The Daily Sun that the government aims to lower onion prices while ensuring fair retail prices for farmers. Authorities are also monitoring the available stock levels.
According to the Ministry of Agriculture, farmers’ production costs last season ranged from Tk35-48 per kilogram. The Department of Agricultural Extension estimated that over 39 lakh tonnes of onions were produced last season, sufficient to meet domestic demand.
However, to offset post-harvest losses, an additional 6 lakh to 7 lakh tonnes of imports will be required, according to the ministry.
Price situation in India
Meanwhile, India has reduced the minimum export price of onions to $305 per tonne from the previous $405 to encourage exports. Importers expect this move to increase shipments to Bangladesh and help lower domestic prices.
Anil Sarkar, a C&F agent in Hili, India, noted that although India cut onion prices in January this year, the suspension of exports to Bangladesh meant the reduction had no effect on the local market here.