Govt allows onion imports from Monday as price hits Tk100/kg

The government has decided to allow the import of onions starting from Monday (5 June) in an effort to curb the steep rise in prices of this essential kitchen ingredient.

In a press release issued on Sunday, the Ministry of Agriculture announced its decision to allow onion imports. 

Initially, onions were being sold at Tk30-Tk35 per kg during the onion season, thanks to a good production. However, after the last Ramadan Eid, onion prices suddenly began to surge.

On Monday, onion prices reached alarming levels, reaching as high as Tk100 per kg in various kitchen markets in the capital, rendering it unaffordable for low-income people. In some areas, prices even soared up to Tk105 per kg.

The Ministry of Agriculture stated that this decision has been taken to safeguard the interests of all consumers and to alleviate the hardships faced by working people with limited income, caused by the abnormal increase in onion prices.

Haji Md Mazed, an onion-garlic importer from Shyambazar, told TBS that the price of onion in India is Tk11-Tk12 per kg, which may stand at Tk30 in the country after imports.

He mentioned, "Some hoarders and large-scale farmers have manipulated the onion market by limiting the supply and driving up the prices. They will suffer when the imported onions arrive in the market."

According to market analysis data from the Trading Corporation of Bangladesh (TCB), the price of onions has increased by 80.95% in the past month. In comparison to the same period last year, the growth rate is 153.33%.

The Department of Agriculture Extension reported a good onion yield this year, with preparations underway for summer onion cultivation. Consequently, the government had kept onion imports suspended since 15 March this year. However, the local market experienced a surge in prices following Ramadan.

In the interest of farmers, the government was sticking to its ban on onion imports even when the price was in the range between Tk50 and Tk60 as it considered the rates reasonable as they allow farmers to earn a decent profit. Production costs of onions averaged around Tk30 per kilogram last season.

However, with prices surpassing Tk80, the government has shown an inclination toward permitting imports, according to the agriculture ministry.

During a recent event, Agriculture Minister Abdur Razzaque informed the media that the government would make a decision on whether or not to allow onion imports after observing the local market situation.

Minister Abdur Razzaque while briefing reporters following a seminar at the Agargaon on Sunday acknowledged the challenges associated with onion imports, mentioning that allowing imports could lead to a drastic decline in prices, negatively impacting farmers' interests and discouraging onion cultivation. On the other hand, if imports are not allowed, consumers would continue to suffer from high prices.

According to the agriculture ministry, 34 lakh tonnes of onions were produced in the country in the current fiscal year, one tonne less compared to last year. The demand for onions in the country amounts to approximately 28 lakh tonnes annually. During FY22, the country imported 6.65 lakh tonnes of onions.