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Onion prices surge after India’s export ban

Rtv news

  09 Dec 2023, 17:43

Retailers are selling onions at as high as Tk 200 a kilogramme in and outside of Dhaka, compared with Tk 130 on Thursday (Dec 7) in a shock development for consumers reeling under the higher cost of living.

The prices of onions have increased by Tk 50 to Tk 60 per kg in Khulna as elsewhere in Bangladesh shortly after India banned its export till March 31 next year.

The prices jumped in the wake of India's extension of the onion export ban on Friday.

The neighbouring country India extended the ban until March, 2024 – three weeks before the current phase of restriction expired on December 31 – in order to increase the supply in the domestic market and control the price of the vegetable.

Though wholesalers and retailers in Bangladesh are blaming India's ban extension for the sudden increase, market observers questioned the spike since the embargo was not new.

Nahidul Islam, an onion trader, said the price of imported onion was higher as the importers imported onion at high price.


However, the recent announcement of India restricting export also made the onion market unstable.


"There is no reason for the onion price to almost double overnight."

But retailers were selling the homegrown variety of onion at Tk 204 a kg at Karwan Bazar in Dhaka today (Dec 9), compared with Tk 130 per kg on Thursday. Prices of Indian onion rose to Tk 110 from Tk 50 to Tk 60 per kg.

"Besides, there is not enough supply as per demand in the local market."


Mohammad Abdul Mazed, general secretary of the Shyambazar Onion Wholesalers Association, said that India's export ban has had a big impact on the country's market. Rains in the past few days have also affected the prices.

"Supply crunch is another reason for the price hike."

The price has rocketed not just in Dhaka but also in other parts of the country.

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