Import halt, supply shortages surge onion prices

Onion prices have surged by up to Tk 15 per kilogram—a 24 percent jump within a week—putting pressure on consumers.

The price hike, typical during August, is driven by adverse weather, a halt in onion imports from India, and reduced supply from key producing regions.

In Dhaka’s wholesale market at Karwanbazar, local onions are priced between Tk 70-75 per kg, with retail prices reaching as high as Tk 80 per kg. Retailers say rising costs from producing areas like Pabna and Faridpur make price cuts impossible, leading consumers to reduce their purchases.

Pabna, a major onion producer, is currently relying solely on local harvests. With Indian imports suspended for an extended period, wholesalers note that farmers are withholding supplies to await better prices, mirroring last year’s trend.

Consumer rights groups accuse some traders of artificially restricting supply to drive prices up and call for urgent government action and stricter market oversight to protect consumers.