The sudden rise of onion price will remain a grim reminder of how a lack of readiness can overwhelm an entire nation, to the point of triggering panic.
India is the traditional supplier of onions; it does meet a substantial demand in Bangladesh, and hence any hiccup in export from India is potentially threatening to affect prices. On the other hand, over-supply, especially at time of onion harvest in Bangladesh, causes the prices to slump to levels even below the production cost.
It looks like the second scenario is now in place. A news item published in the FE says sharp decline in onion prices due to imports from India has seriously affected onion growers in the country, though the price fall has come as a respite for the consumers.
In the wake of the drastic price fall, onion growers are now struggling to get back even the amount they invested in cultivation, adds the report. Given the correlation of imports from India or ban and rise and fall in local prices of onion, it is a long standing demand to plan import so that local growers are not hurt.