Onion prices plummeted by up to 40 taka per kg in a single day at Khatunganj, one of the country's major wholesale markets. This sharp decline is attributed by traders to the dual impact of the arrival of new season onions and the government's announcement to approve Import Permits (IP) from India.
Wholesale prices for onions, which were selling for 130 taka per kg on Thursday or Saturday, dropped to as low as 90 taka.
New season Meherpur variety onions are currently selling between 70-85 taka per kg. The Ministry of Commerce announced the release of 50 IPs of 30 tons on Saturday, a move taken after domestic onion prices saw an abnormal spike at the end of the season.
Traders stated that the announcement of the IP issuance alone caused the price drop, even before any imported onions reached the market. Some noted a decrease of Tk 2,000 per sack, leading to losses for some traders.
Traders and the Director General of the Department of Agricultural Extension (DAE), SM Sohrab Uddin, confirmed that domestic onion production met nearly the entire national demand this year (production was 37.89 lakh tons in 2023-24, against a demand of around 3.2 million tons).
The normal supply of 15-18 trucks of onions arriving daily in Khatunganj and Chaktai has resumed. The instability (rising prices up to Tk 130-140/kg) was primarily blamed on the greed of local farmers and traders inclined to make high profits at the end of the storage season.
The DAE highlighted that the government's incentive to provide farmers with the new 'air flow' machine for preservation has significantly reduced post-harvest loss. The rotting rate, which previously stood at 30-35%, has now reportedly fallen below 5%, ensuring a stable supply throughout the year and eliminating the shortage that typically necessitated imports.
The DAE confirmed that this better preservation meant many farmers still held old stocks, and the sudden price increase was unwarranted.
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