Onion, ginger price hike raises questions as supply, imports stable

Onion prices have surged by up to 24% in just one week, with retail rates in Dhaka now ranging from Tk75 to Tk85 per kilogram. 

Prices of imported ginger and garlic have also climbed sharply, further straining household budgets already burdened by rising costs of essential goods.

Traders attribute the onion price rise to declining stock levels despite steady supply. During a visit today to Moghbazar, Karwan Bazar, and Shahjadpur, onions were found selling between Tk75 and Tk85 per kg, up from Tk60–Tk65 last week and Tk55–Tk60 the week before.

According to the Trading Corporation of Bangladesh (TCB), retail onion prices now average Tk70-Tk85 per kg, marking a 34% increase over the past month.

In the wholesale market at Karwan Bazar, a 5-kg bundle of onions is now selling for Tk350–Tk360, compared to Tk300 last week. Traders claim that there is no supply crisis, but that stock levels have declined, leading to price hikes.

Meanwhile, TCB data shows that imported ginger prices have jumped by as much as Tk80 per kg over the past week. Garlic prices have also increased by Tk10 per kg.

Currently, ginger is selling for Tk180-Tk280 per kg, up from Tk120-Tk200 last week. Garlic is selling for Tk160-Tk200 per kg, up from Tk150-Tk190.

Babul Mia, a wholesale onion trader at Karwan Bazar, told TBS, "Onion prices have risen by Tk10 per kg at the wholesale level. Traders with smaller stocks have sold out, while those with larger reserves are now selling at higher prices. This price trend is typical for this time of year."

However, the justification offers little relief for consumers. With the prices of vegetables, eggs, poultry, and rice also remaining high, many families are being forced to cut down on both quantity and quality of daily purchases.

Shahjadpur resident Zainal Abedin told TBS, "Prices are going up across the board, but our incomes aren't. The cost of living is becoming harder to bear every day."

Consumer rights groups have questioned the recent price hikes, citing ample onion production. SM Nazer Hossain, Vice President of the Consumer Association of Bangladesh, urged the government to investigate the unjustified increases, particularly for ginger, whose import costs haven't risen.