Wholesale onion prices drop Tk 40 per kg in a day

The wholesale market in Khatunganj, Chattogram, has seen onion prices fall by Tk 40 per kilogram within a day. Traders in the market said that the arrival of newly harvested onions, along with the government’s announcement approving import permits from India, has affected the market.

Traders reported that onions selling for Tk 130 per kg on Thursday or Saturday have now dropped to Tk 90. Meanwhile, newly harvested Meherpur variety onions are being sold at Tk 70–85 per kg.

According to traders, local onion production has fully met the demand this season. The supply in the market remained stable throughout the year, benefiting farmers and saving foreign currency due to the absence of imports, which positively impacted the national economy.

A visit to onion warehouses in Khatunganj and Chaktai on Sunday morning (7 December) revealed that several warehouses had received new stock. These Meherpuri onions are larger in size compared to those from Pabna and Sirajganj.

Abdul Aziz, manager of Messrs Al Muniria Traders at Hamid Ullah Mia Market in Khatunganj, told Jago News, “Following the news of onion imports from India, prices dropped overnight. The onions we sold at Tk 130 on Saturday are now being sold at Tk 90. New Meherpuri onions have arrived, and we are selling them at Tk 75–80 per kg.”

The government decided to allow imports from India after local onion prices began rising abnormally over the past few days. On Saturday, the Ministry of Commerce announced the issuance of 50 import permits for 30 tonnes of onions. This news impacted both wholesale and retail markets across the country.

Yasir Arafat, manager of Messrs AH Traders in Khatunganj, told Jago News, “The imported onions have not reached the market yet. But early-season local onions have arrived, and more are coming. Following the government’s import announcement on Saturday, prices dropped by Tk 35–40 per kg. Onions we sold at Tk 110 on Thursday have fallen to Tk 75.”

Local onions have satisfied nearly all demand this year. However, market instability typically occurs toward the end of the season. Normally, 15–18 truckloads of onions arrive daily in Khatunganj and Chaktai. Although arrivals decreased slightly last week, the supply has now returned to normal.

Abul Bashar, owner of Messrs Bashar & Sons in Middle Chaktai, said excessive greed among farmers caused the earlier price hike. Speaking to Jago News on Sunday afternoon, he said, “The onion market was good this year. Farmers received good prices, and supply remained normal throughout the year due to abundant production. To protect local farmers, the government initially did not permit imports. But toward the end of the season, farmers aimed for higher profits, pushing wholesale prices of large onions to Tk 130–140 per kg. That is why the government issued import permits on Saturday. Following the announcement, market prices dropped by Tk 2,000 per sack. While commission agents are not facing losses, other traders are affected.”

He added that new onions are arriving alongside old stock. “Prices were not supposed to rise under these circumstances. They had risen earlier, but now they have fallen sharply in just one day. Prices may decline further in the coming days.”

Dr. Shailendra Nath Majumdar, recently retired senior scientific officer of the Bangladesh Agricultural Research Institute, told Jago News that 30–35% of onions produced in the country are wasted due to lack of proper storage facilities.

He said, “Our national demand for onions is around 3 million tonnes. Even if production is higher, 400,000 to 600,000 tonnes are lost due to spoilage.”

Director General of the Department of Agricultural Extension, SM Sohrab Uddin, told Jago News, “Onion production exceeds national demand every year, but lack of storage technology used to cause significant losses, creating supply shortages. This year, that shortage did not occur. As part of government incentives, new air-flow machines were provided to farmers, preventing spoilage. As a result, there has been no supply shortage this year, and many farmers still have stocks of old onions.”