Local Onion Prices Soar Above Tk150 Amid Seasonal Shortages

Onion representative photo

As of today, November 1, major markets such as Karwan Bazar, Kalyanpur, and Hatirpool are reporting high-quality local onions priced between Tk155 and Tk160 per kilogram, up from Tk130-135 just two weeks ago. Meanwhile, second-grade onions are being sold for approximately Tk135 per kilogram.

Traders attribute this price surge to the seasonal depletion of local onion stocks. "Every year at this time, local onion supplies begin to dwindle, pushing prices higher. To meet demand, we often depend on imported onions," explained Mohammad Abdul Majed, a wholesale onion seller at Shyambazar.

Majed noted that second-grade local onions are currently priced wholesale at Tk120-125 per kilogram, marking a Tk20 increase over the past fortnight. He highlighted the scarcity of first-grade local onions, stating, "The shortage is driving prices up as it does every year, but we are not facing an overall market shortage due to imports. Indian and Pakistani onions are available in the wholesale market at Tk90-92 per kilogram."

"Currently, imported onion prices remain stable in the wholesale market. Local 'murikata' onions are expected to arrive in the coming days, which should help stabilize prices. Until then, imports will be necessary," he added.

In light of the rising prices, the Bangladesh Trade and Tariff Commission has recommended temporarily lifting the 5% import tax on onions to mitigate costs. In a letter to the National Board of Revenue (NBR) on October 31, the commission urged for this measure to ease local market prices.

Earlier in September, the NBR had removed the regulatory tax on onion imports, a decision set to remain in effect until the end of November.