Onion prices surge 30pc in two days

Onion prices have surged to as high as Tk 120 per kilogramme in Dhaka and other major cities within just two days, fuelled by crop damage from heavy rainfall and the continued suspension of imports from India.

Retail prices, which stood at Tk 80-85 per kg late last week, soared to Tk 100-110 on Monday, with some city markets charging as much as Tk 120, marking a steep increase of more than 30 per cent.

Wholesalers and traders say the sudden spike reflects a sharp drop in supply from key growing regions, where heavy rains have inundated fields and delayed harvesting.

Onion prices in the wholesale hubs of Shyambazar in Dhaka and Pabna rose to Tk 90-105 per kg, up from Tk 72-85 over the weekend.

Traders attributed the rise to disrupted supply chains following the November downpours that flooded onion fields in Pabna, Rajshahi, Faridpur, and Kushtia, the main onion-producing areas.

"The rain has damaged newly planted onion fields and delayed harvesting," said Abul Kalam, a wholesaler. "Supply from the northern districts has dropped sharply, while demand remains high. That's why prices are shooting up."

Market insiders said many farmers are now redirecting their remaining stocks toward producing seed onions (murikata) after the rains damaged standing crops, further tightening supply in local markets.

"Prices in the district-level wholesale markets rose by Tk 15-20 a kilo in just a day," said Altaf Ali, a spice trader in West Dhanmondi. "We're struggling to get enough stock even at higher rates."

The situation has been compounded by the continued halt in Indian onion imports, which had previously helped stabilise domestic prices.

Importers have applied for new import permits (IPs) to resume shipments from India, but official approvals remain pending.

Officials from the Department of Agricultural Extension's Plant Quarantine Wing said they have already received around 3,000 applications for import permits.

The Ministry of Agriculture acknowledged that the supply situation has tightened but said it is carefully reviewing the applications to prevent market manipulation.

The late start of the Rabi onion season, coupled with crop damage and sluggish import approvals, has created a temporary supply shortage.

Market observers warned that prices could climb further in the coming weeks if imports are not cleared before new harvests arrive in mid-December.

"Without timely imports, the market will remain unstable," said Mobashsher Hosain, a spice trader at Shyambazar.

According to official data, Bangladesh's annual onion demand is around 3.5 million tonnes, while last season's production stood at 3.8 million tonnes.

tonmoy.wardad@gmnail.com