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Why Are Onion Prices Soaring in Bangladesh Despite Peak Harvest? Farmers, Traders, and Market Dynamics Explained

by Tatyana Ivanovich
June 3, 2025
in News, Onion
0
Why Are Onion Prices Soaring in Bangladesh Despite Peak Harvest? Farmers, Traders, and Market Dynamics Explained

In a surprising turn of events, onion prices in Bangladesh have continued to climb despite the peak harvest season. Data from the Trading Corporation of Bangladesh (TCB) shows retail prices in Dhaka ranging from $0.36 to $0.59 per kg, marking a 23.5% monthly increase. Just a week ago, prices were between $0.36 and $0.50 per kg, indicating a sharp upward trend.

Why Are Prices Rising When Supply Should Be High?

  1. Farmers Holding Stocks for Better Prices
    • Initially, farmers flooded the market to recover costs, causing a temporary price drop.
    • Now, with the full harvest collected, growers are storing high-quality onions that have longer shelf life, reducing immediate supply.
    • Wholesalers in Pabna and Faridpur report prices surging to $18.32 per maund (37.65 kg), up from $7.33-$9.16 a month ago.
  2. Government Suspends Imports to Protect Farmers
    • The government halted onion imports since March 2024 to ensure local farmers get fair prices.
    • However, domestic production (estimated at 39 lakh tons) still falls short due to post-harvest losses, requiring an additional 6-7 lakh tons in imports.
  3. Production Costs Outweighing Earlier Retail Prices
    • Agriculture Secretary Mohammad Emdad Ullah Mian stated that farmers spent $0.32-$0.44 per kg to grow onions.
    • When retail prices dropped below $0.55/kg, farmers were selling at a loss, prompting them to store produce for better returns.

Consumers and Retailers Feel the Pinch

  • Dhaka residents report sudden price jumps of $0.09-$0.14 per kg.
  • Retailers like Nurul Alam Shikdar confirm local onions now sell at $0.64/kg, up from $0.50-$0.55 just a week ago.
  • Wholesalers blame reduced supply despite harvest season, as farmers and traders hold onto stocks anticipating further price hikes.

Will Prices Stabilize Soon?

  • Agriculture Secretary Mian suggests a fair retail price should be around $0.55/kg, allowing farmers a 15-20% profit margin.
  • However, with stocks being withheld and imports paused, short-term volatility may continue.

A Balancing Act Between Farmers’ Profits and Consumer Affordability

The current onion price surge highlights the fragile balance between ensuring farmers’ profitability and keeping essential goods affordable. While government interventions aim to protect growers, supply chain inefficiencies and post-harvest losses remain critical challenges. Moving forward, better storage infrastructure, strategic import policies, and market monitoring will be key to stabilizing prices.


Tags: agribusinessagricultural economicsagronomyBangladesh AgricultureCrop StorageFarm PolicyFarmers MarketFood Inflationonion prices
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