Why onion prices keep increasing despite record production
In the last season, the country produced 42.45 lakh tonnes of onions on 2.80 lakh hectares of land, 4.24 lakh tonnes more than the target of 38.21 lakh tonnes, marking the highest production in Bangladesh’s history.
Highlights:
- Retail prices hit Tk90 per kg in some Dhaka markets
- Traders say local onion stocks nearly exhausted
- Storage rot and halted imports blamed for supply shortage
- Farmers report massive losses due to prolonged rain and humidity
- 100 tonnes of Indian onions arrive at Sonamasjid Land Port after 8-month pause
Despite record production this year, onion prices in Bangladesh have risen sharply since early August, increasing by nearly Tk30 per kilogram within two weeks.
According to industry sources, prolonged rain and high temperatures have increased humidity, causing onions in storage to rot and reducing supply.
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Imports from India had also been halted for months, leaving local stocks to meet demand.
Retail prices in Dhaka have risen to Tk75–85 per kg, with some areas selling at Tk90. Just two weeks earlier, onions were Tk60–65 per kg, and for months before that, it was Tk55–60 per kg.
Prices at the wholesale level fell slightly on Wednesday (13 August) after the government announced permission for imports, dropping by Tk10–15 per kg.
High yield, crippling post-harvest losses
In the last season, the country produced 42.45 lakh tonnes of onions on 2.80 lakh hectares of land, 4.24 lakh tonnes more than the target of 38.21 lakh tonnes, marking the highest production in Bangladesh's history.
Previous figures show 39.11 lakh tonnes produced in 2023-24, 34.56 lakh tonnes in 2022-23, 36.40 lakh tonnes in 2021-22, and 33.62 lakh tonnes in 2020-21.
However, 20-25% of onions are lost during production, collection, marketing, and storage, with weak storage facilities preventing the country from fully benefiting from surplus harvests.
Farmers report significant losses due to rotting.
Rahman Pramanik, from Baoitola village in Pabna's Santhia upazila, said, "Some farmers have lost more than half their onions. I stored about 500 tonnes, of which 100–150 tonnes have rotted. This has not happened in other years."
Motahar Hossain, a major onion trader in Satihat, Naogaon, said, "The stored local onions are almost finished now. Supply is low, which is why prices increased. But prices have started to decrease. If the import of Indian onions continues, prices will return to normal."
Golam Mostafa, a farmer from Bhimpur village in Naogaon Sadar upazila, claimed he sold all his onions early in the season to avoid losses.
"Farmers no longer have onions. Maybe traders do, and they might be forming a syndicate. I also doubt the government's production data — every year there is a shortage despite claims of high output," he said.
Dr Md Nur Alam Chowdhury, principal scientific officer at the Bogura Spice Research Centre, said this year's production is around 36 lakh tonnes, while the country's demand is at least 40 lakh tonnes.
"About 25% of onions are wasted during storage. The remaining supply is what we consume. Prices are rising now because market supply has dropped — this is part of the normal process," he added.
Expert concerns over data and storage
Experts have raised questions over the accuracy of official production figures and warned that poor storage infrastructure is a recurring cause of price instability.
Professor Abu Noman Faruq Ahmmed of Sher-e-Bangla Agricultural University explained, "Continuous rainfall increases air humidity, which causes onions to rot. This time, there has been heavy rain, so losses are higher. In recent years, farmers have been shifting to summer onions for better prices, but rain has damaged seedlings this season. Those using polysheds have had some success."
He added that accurate production data is essential to stabilising the market.
"Some new storage technologies, such as the air blower, can reduce post-harvest losses for large-scale storage, but adoption remains limited."
Spice Research Centre official Nur Alam also noted the need for better preservation methods, warning that even record harvests will fail to meet demand unless wastage is reduced.
100 tonnes of Indian onions arrive at Sonamasjid port
Amid the rising prices, 100 tonnes of onions arrived at Sonamasjid Land Port in Chapainawabganj from India yesterday evening (14 August), marking the resumption of imports after an eight-month halt.
Four trucks carried the consignment, according to Mainul Islam, manager of 'Panama Sonamasjid Port Link Limited', which operates the port.
"The stalemate on onion imports from India broke with this delivery," he said.
Local traders expressed hope that prices would stabilise following the resumption of imports from the neighbouring country.
