In Bangladesh, wholesale onion prices fell this week following an announcement of imports, while retail levels have yet to adjust. On Tuesday, wholesale prices were at 75 taka (US$0.64) per kilogram, dropping to 65–66 taka (US$0.55–0.56) by Wednesday. Retail prices stayed at 75–85 taka (US$0.64–0.73) per kilogram.
Wholesalers report that many farmers and district-level traders who stored onions after the April harvest had slowed their market release, contributing to recent price increases. "Onions have not been available in adequate quantities to meet demand for more than three weeks," said Mohammad Abdul Mazed, general secretary of the Shyambazar Onion Wholesalers Association, one of Dhaka's largest wholesale markets.
In Faridpur, a key onion-producing district, prices fell by 200–300 taka (US$1.71–2.56) per maund (40 kg) after the import announcement. On Tuesday, onions sold for 2,800–3,000 taka (US$23.98–25.70) per maund, declining to 2,500–2,800 taka (US$21.41–23.98) the following day. Shahadat Hossain, senior market officer at the Department of Agricultural Marketing in Faridpur, said farmers and large traders were not supplying enough onions to meet demand in an attempt to drive up prices.
Over the past three weeks, prices have climbed steadily as traders accused farmers and district suppliers of withholding stock to secure higher returns. In Dhaka kitchen markets, locally grown onions were trading at 85–90 taka (US$0.73–0.77) per kilogram, compared to 60–65 taka (US$0.51–0.56) a week earlier.
Trading Corporation of Bangladesh (TCB) data shows retail prices in the capital at 75–85 taka (US$0.64–0.73) on Tuesday, more than 33% higher than a month ago. A year earlier, onions were selling for 110–120 taka (US$0.94–1.03). In April, Agriculture Secretary Emdad Ullah Mian told The Daily Star that a fair retail price for farmers should be around 60 taka (US$0.51) per kilogram.
According to the agriculture ministry, production costs for farmers last season ranged from 35 to 48 taka (US$0.30–0.41) per kilogram. Seeds are sown in December, with onions reaching markets from March or April. Many consumers have described the recent rise of 20–25 taka (US$0.17–0.21) per kilogram as unreasonable, given the April harvest completion.
The Department of Agricultural Extension estimates last season's harvest at over 3.9 million tonnes, meeting domestic needs, but projects imports of 600,000–700,000 tonnes to cover post-harvest losses. On Tuesday, Commerce Adviser Sk Bashir Uddin said imports would be allowed to bring prices down. "We will import onions from wherever we can get them at a lower price. We will import only as much as is necessary to bring prices down. There is no specific country fixed for this," he said.
Source: The Daily Star
