Onion Prices Near Tk200 Per KG

India’s onion export ban extension and a supply crunch have driven the popular kitchen item’s prices by up to Tk 80 per kilogramme overnight, traders say.

A kilogramme of imported Indian onion now costs Tk 180 to Tk 185, up from Tk 102 to Tk 105 on Friday (Dec 8). The indigenous variety recorded a Tk 60 hike in prices overnight, costing Tk 190 a kg.

Freshly harvested onions that cost Tk 105 on Friday are now costing around Tk 140.

Traders say the volatility is temporary and blame wholesalers for manipulating the market.

“The prices have mainly risen because of a lack of supply, partly due to India’s export ban. Newly-harvested onions have started hitting the market. The prices will stabilise within a week once the supply becomes normal,” said Shyambazar trader Akkas Joardar. 

Shyambazar Onion Traders’ Association General Secretary Md Abdul Majed said the impact of India’s export ban has made the market more volatile and driven prices up.

Consumers have urged the government to intervene and dismantle the syndicate, fearing that the prices would surpass Tk 300 per kg if things went unchecked.

India extended restrictions on the export of onions until Mar 31, 2024 to ensure an adequate supply locally and prevent a surge in the bulb’s prices. But there are fears the move will lead to a price slump on the local market. 

Initially, the government implemented a minimum export price of $800 per tonne on onion exports from Oct 28 to Dec 31 of the current year.

Bangladesh’s annual demand for onions ranges between 2.2 million and 2.5 million tonnes.