The price of onions has suddenly heated up in kitchen markets across the country. The reasons cited are, as usual, the same old ones-unscrupulous syndicates, supply shortages and poor government monitoring. Of these, the latter two seem secondary; the real culprit is, in fact, the market syndicates.
Market experts have confirmed that there is no actual shortage of onions this time. It is the same old cartel that has once again reared its head, cashing in on the country's political uncertainty. Clearly, a syndicate of hoarders and wholesalers has been playing ducks and drakes with consumers, exploiting flimsy excuses to manipulate prices.
Government authorities, as expected, have offered explanations and made hollow promises to bring prices down, but to no avail. The Ministry of Commerce has claimed that the situation is being closely monitored and that import approvals will be issued quickly, if necessary.
However, past experience shows that government actions usually come only after consumers have already been fleeced by unscrupulous traders. The Consumers Association of Bangladesh (CAB) has also conducted a few raids in warehouses. All this highlights the absence of an efficient monitoring and enforcement mechanism. The government agencies tasked with regulating the market have so far failed to play their due role in stabilizing retail prices.
Once again, the government appears to be taking the same ineffective approach to rein in the markets. In just two weeks, the price of this essential cooking ingredient has doubled-from Tk 50-60 per kilogram to as high as Tk 120-and shows no sign of abating. The sudden price spike has hit consumers hard, especially those from low- and fixed-income groups. It has also triggered anger and frustration among the public, who see this as yet another instance of manipulation by vested interests amid government inaction.
What is particularly unfortunate is that such price hikes occur despite our annual onion production exceeding total domestic demand. According to the Ministry of Commerce, annual demand stands at around 2.6 to 2.7 million tonnes, while last season's production was about 3.8 million tonnes-a surplus of roughly 1.1 million tonnes.
Despite this surplus, Bangladesh still imports between 600,000 and 700,000 tonnes of onions every year, largely due to inadequate storage capacity. Why the government continues to ignore this critical issue remains a mystery.
Another key factor behind price volatility is India's onion export policy. In the past, India's export bans or high export duties have instantly pushed local prices to record levels-as seen in 2019, when onions reached Tk 250 per kilogram. Yet our policymakers have failed to learn from experience. Overreliance on Indian imports without maintaining adequate buffer stocks has left the country vulnerable to such shocks time and again.
