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Anticipated Onion Price Drop as Local Harvests Surge: Bangladesh Agricultural Outlook

by Tatyana Ivanovich
March 7, 2024
in Market
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Anticipated Onion Price Drop as Local Harvests Surge: Bangladesh Agricultural Outlook

As the calendar inches closer to mid-March, Bangladesh braces for a significant shift in its onion market dynamics. Locally cultivated seasonal bulbs are poised to flood the market, promising an imminent drop in prices. Reports from agricultural hubs including Faridpur, Rajbari, Pabna, Magura, Jhenaidah, Kushtia, and Meherpur signal the partial commencement of onion harvesting, hinting at an ample supply soon to hit the stalls.

Renowned agro-economist and researcher Dr. Jahangir Alam Khan forecasts a surge in local onion production, estimating a staggering 30 lakh tonnes to grace the market during peak harvesting. With such abundance, consumers can expect a downturn in prices, possibly plummeting to Tk40-50 per kg during the harvest period.

However, ensuring favorable returns for farmers remains paramount. Dr. Jahangir emphasizes the necessity of a temporary ban on onion imports during the peak season, urging policymakers to safeguard local producers’ interests. He advocates for a strategic balance, suggesting a limited import quota of 50,000 tonnes to stabilize the market while ensuring fair compensation for farmers.

Echoing these sentiments, Tajul Islam Patwary, Director (Monitoring) of the Department of Agricultural Extension (DAE), sheds light on this year’s expanded onion cultivation. With farmers cultivating larger swathes of land, the projected onion yield surpasses 36 lakh tonnes. Patwary also notes a peculiar trend: some farmers opting for premature harvesting to capitalize on lucrative market prices, a practice likely to normalize as mature onions flood the market.

The optimism surrounding the upcoming harvest season stems from meticulous planning by agricultural authorities. The DAE’s ambitious target of 36.74 lakh tonnes from 2,60,800 hectares reflects a concerted effort to bridge the perennial gap between demand and supply. Despite historical overproduction during winter, post-harvest losses and inadequate storage infrastructure perpetuate scarcity during lean periods.

To mitigate this, off-season cultivation initiatives have gained traction, contributing around 60,200 tonnes this year. Notably, murikata onion, a seasonal delicacy, faces dwindling availability, further underscoring the significance of the impending main seasonal harvest.

Murikata onion’s decline contrasts sharply with the anticipation surrounding the main seasonal harvest, renowned for its extended shelf life. Ministry estimates suggest an influx of 26-28 lakh tonnes, offering a glimmer of hope in Bangladesh’s perennial battle against onion scarcity.

As the nation gears up for this agricultural milestone, stakeholders remain cautiously optimistic. The convergence of favorable weather, expanded cultivation, and strategic market interventions promises to reshape Bangladesh’s onion landscape, fostering a future of stability for both farmers and consumers alike.

Tags: onion
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