Onion prices have suddenly started rising in the capital's markets at the beginning of the month of Baishakh, the high season for onion harvest. In the last three days, the price of onion per kg has increased by up to Tk 15. The prices of onion will increase, businessmen fear.
Sources said big traders have already started buying and storing onions. Many people are also buying more onions for consumption. This is because very good quality dried onions are now available in the market. These onions will not spoil easily. The price is now increasing due to the huge stock of onion with the syndicates.
Meanwhile, on Tuesday, a visit to various markets including Karwan Bazar kitchen market in Dhaka showed that onions were being sold at Tk 50 to Tk 65 per kg, depending on the quality of the produce.
Last Friday, onions were also sold at Tk 35 to Tk 40 per kg. However, it started increasing immediately after Pahela Baishakh.
Traders say that it is the peak season for local onion harvest. But suddenly, the supply of onions has decreased. That is why the wholesale price has increased. Most onions in Dhaka come from Faridpur. The price of onion in Faridpur is increasing. From what the shopkeepers say, the price will increase further in the future.
Wholesale onion traders in Karwan Bazar told the Daily Observer that the supply of onion in the warehouse is low, although the production of onion this season has been satisfactory.
Traders also said that prices are increasing as many farmers store onion during this time. They say that the impact of prices in the wholesale market has reached the retail market.
In the Malibagh kitchen market in the capital, it was shown that low-quality onions are being sold for Tk 50 per kg, while good quality onions are being sold for Tk 65 per kg. Last Friday, the same onion was priced at Tk 50 and Tk 55 respectively.
That is, the price of good quality onion has increased by Tk 15 per kg.
Onion seller Mamunur Rashid said, "Big traders have already started stocking onion. Many consumers are also buying more onion for storage. As a result, the price is also increasing due to increased demand."
Ismail Ali, a private service holder, who came to buy onion at the Segun Bagicha kitchen market in the city, told this correspondent, "I bought onion for Tk 45 a few days ago, but they were asking for Tk 65 today (Tuesday)! There is no monitoring in the market now, so the price is increasing at will."
He also said, "If the price increases like this even in the peak season of local onion, what will happen in the future? The government needs to strengthen market monitoring now, otherwise, the abnormal price of onions may repeat itself."
Sources said onion prices have increased in Rangpur markets in the past week. On Tuesday, local onions sold last week were being sold at Tk 40 to Tk 45 per kg, up from Tk 30 to Tk 35.
Meanwhile, due to the end of the season and the shortage of supply due to stockpiling of onion, the price of local onion has increased by Tk 5 per kg in Hilli, Hakimpur and Dinajpur in a week. Traders believe that if the supply is like this, the price of onion may increase further in the coming days.
On Tuesday, a visit to Hilli Bazar showed that local onion is displayed in every shop in the market. Imported onion are being sold at Tk 40 per kg, which was sold at Tk 35 per kg a week ago. And local onion is being sold at Tk 40 per kg, which was previously sold at Tk 30 per kg. These two varieties of onions were sold at Tk 25 to Tk 30 before Eid.
According to the Department of Agricultural Extension, onion production in the country has increased by 1.5 million tonnes in the last 10 years. And the amount of cultivated land has increased by almost 50 per cent. In the 2011-12 fiscal year, onion production was 2 million tonnes, and in 2023-24, it was 3.4 million tonnes on 2.5 million hectares of land. On the contrary, the demand for onion in the country is 2.8 million to 3 million tonnes. In addition, Pabna, Faridpur, Rajbari and Rajshahi are among the top four districts in onion production.
That is, according to the government, production is at least 4 million to 6 million tonnes more than the demand. But even then, more than 7 million tonnes of onion have already been imported from India alone in the current fiscal year. Therefore, the question arises, why the market cannot be controlled without imports even though it is self-sufficient in production.
Analysts say that 25 to 30 per cent of the onion produced in the country is wasted due to various reasons, including lack of proper care and storage. As a result, there is a shortage even after excess production. And to meet this deficit, imports are being made.
