There is no shortage of onions in the country now. At least 75,000 tons of new local onions are coming to the market this month. Despite that, there has been unusual instability in the market for a week. The price per kg has increased by 30 to 35 taka. In such a situation, the Bangladesh Trade and Tariff Commission (BTTC) has recommended allowing imports to reduce onion prices quickly, even after learning about the direct manipulation of middlemen.

In a letter sent to the Commerce Secretary and Agriculture Secretary on Thursday, BTTC said that the price of onion in the market has exceeded Tk 110 per kg. Therefore, import can be allowed to increase supply. However, the organization also admitted that the weakness of market management and manipulation of middlemen are directly responsible for the abnormal increase in onion prices in the market. The Department of Agricultural Extension says that a section of importers are trying to increase onion prices by creating an artificial crisis without getting import permission. If import is allowed at this time, farmers will suffer greatly. Those concerned are hopeful that stability will return to the market soon.

onion prices in the country, the overall situation including onion demand, production, local market price, international market price, and existing import duties has been reviewed.

Analyzing data from the government agency TCB, the Tariff Commission says that in March 2023, the average price of onion was 33 taka per kg, which stood at 115 taka in November. That is, the price increased by 248 percent in November compared to March. In April 2024, the average price was 63 taka, which increased to 130 taka in November. Accordingly, the price increased by 106 percent in November compared to April. The lowest price in March this year was 42 taka, which increased by 150 percent to 105 taka in November. The review shows that the price of onion has increased by more than 100 percent in November compared to March-April. A long-term solution to such problems is needed. This year too, since the planting period of cut onions has been delayed, it is expected that it will also be delayed in the production season.

Considering the local market price, it can be seen that although the price of onion has been stable for the last two-three months, the price has increased by 37 to 42 percent in the last one week. Although the price tends to increase in October-December every year, the price has increased abnormally last week, which is a direct indication of manipulation by market management and middlemen.

the Tariff Commission says that the price of onions in neighboring countries is currently around 16 taka per kg, or $195 per ton. Accordingly, if onions can be imported while maintaining a 10 percent customs duty, it is possible to sell them in the country for less than 50 taka per kg.

In the 2022-23 fiscal year, 760,000 tons of onions were imported; in 2023-24, it decreased to 614,000 tons. In the 2024-25 fiscal year, it dropped to 483,000 tons. 99 percent of these imports come from India.

Commission Chairman Mainul Khan said that some middlemen are destabilizing the market by creating an artificial crisis. A kilogram of onion is supposed to be priced at Tk 90 at this time; but it is being sold at Tk 115. The price in neighboring countries including India is now around Tk 30. Therefore, if import permission is granted quickly, supply will increase and prices will also normalize.

The commission says that at every stage of the onion supply chain, middlemen sell at a fixed profit. This issue must be taken into consideration. The actual onion procurement season refers to the period from January to April. Therefore, to prevent abnormal growth, preparation, management and necessary structure for onion storage by the government are needed. Although the government has taken initiatives to establish onion storage facilities at various times, there is currently no cold storage facility for onion storage by the government. Farmers store a significant amount of onions in their homes. In this situation, initiatives should be taken to establish necessary storage facilities along with officially storing onions during the actual procurement season.

Agriculture not agreeing to allow imports right now. Their argument is that if imports start before the arrival of new local onions in the market, farmers will be deprived of fair prices.