Onion crisis: Producers squeezed, consumers pay, traders feast

  The onion market in Bangladesh is in crisis, with producers facing unfair prices, consumers bearing the brunt, and dishonest traders taking advantage of the situation, according to AHM Shafiquzzaman, director general of the Directorate of National Consumer Rights Protection.

 Shafiquzzaman expressed his concerns during a meeting yesterday with onion traders and market stakeholders at the directorate headquarters in the capital. The meeting was aimed at dealing with the abnormal surge in onion prices and its negative impact on both producers and consumers.

"In this situation, the one who is producing is getting less price, the consumer is also being harmed, and the middlemen are looting in between," said Shafiquzzaman, emphasising the urgent need to halt the "hand-to-hand" dealings within the faulty marketing system.

The director general noted that the rise in onion prices is attributed to the unethical practices of hand-to-hand transactions. He underscored the fact that unless this practice is curbed, controlling the market and ensuring fair compensation for farmers will remain a challenge.

Shafiquzzaman accused traders of non-cooperation with the government in stabilising the onion market. He noted that, instead, they increased prices through hand-to-hand dealings, causing instability. The business community was urged to take responsibility, with the government reviewing the situation and warning of potential actions against those found guilty.

Despite fines imposed on many traders, Shafiquzzaman expressed scepticism about normalising the market situation without controlling middlemen. He urged consumers to organise and reduce purchases, citing the successful reduction in meat consumption that led to lower beef prices.

Wholesale traders reported selling onions at Tk110 per kg in the wholesale market, blaming retailers for keeping prices high. Retailers, in turn, pointed fingers at wholesalers but anticipated a price decrease with the arrival of new onions.

Referring to traders in Shyambazar, Shafiquzzaman expressed his concern about hidden onions, emphasising the role of moral principles in resolving the crisis. He noted the delayed information about India's onion export ban, leading to a sudden price surge, and stressed the importance of adhering to moral standards for sustainable improvement.

On 7 December, India's ban on onion exports triggered a sharp rise in prices from Tk110-130 to Tk200-220 overnight. While the introduction of new varieties has started to bring prices down, challenges persist as old local onions are still being sold at Tk180-220, depending on the market.