When production and supply exceed demand, prices usually drop — a well-established rule of economics. But this principle seems to have failed in Bangladesh’s agricultural markets. According to the Ministry of Agriculture, nearly 400,000 tons of onions were produced in excess last season. Based on this information, no import permits were issued. However, with prices now suddenly soaring, the government is allowing imports and deploying a special taskforce to stabilize the market.
Not just onions — the prices of ginger and garlic have also gone up. According to the Trading Corporation of Bangladesh (TCB), between October 29 and November 5, within just one week, onion prices rose by Tk 35 per kg, ginger by Tk 10, and garlic by Tk 15. On October 29, onions sold for Tk 75 per kg, which climbed to Tk 110 within a week. Similarly, ginger rose from Tk 175 to Tk 185, and garlic from Tk 165 to Tk 180 per kg.
Data from the Department of Agricultural Extension show that in FY 2024-25, about 4.4 million tons of onions were produced on 2,934 hectares of land, compared to 4 million tons from 2,735 hectares the previous year. Despite higher production, the November price surge has left government agencies puzzled.
Meanwhile, the Commerce Ministry has moved swiftly in response to the price hike. Letters have been sent to Deputy Commissioners (DCs) instructing them to strengthen local taskforce activities to reduce prices. The ministry’s letter noted that retail onion prices have increased by 40–50% within a week. Despite sufficient stocks, it said, the cause of the price surge must be investigated and corrective action taken. The letter directed intensified monitoring of price and supply conditions through the taskforce.
Officials from the ministry stated that such price hikes, particularly for onions, are seasonal in November and usually temporary. This time, however, unseasonal rains have contributed to the spike. They expect prices to drop soon once the newly harvested “Murikata” onions reach the market.
According to ministry sources, while prices of some products like potatoes have remained stable, the Commerce Ministry is closely monitoring the onion situation. To address the issue, Commerce Adviser Sheikh Bashir Uddin held a review meeting on Sunday at the Secretariat on production, demand, and current prices of onions. Discussions included operating special taskforces against syndicates and hoarders and increasing imports to stabilize supply and prices. The Tariff Commission has already recommended onion imports. There were also talks about whether other agencies, besides the Agriculture Ministry, could collect more accurate data on annual production and demand.
When asked about the situation, former secretary and CAB President A.H.M. Shafiquzzaman told to Bangladesh Pratidin, “The price of onions has increased due to a lack of coordination between the Commerce and Agriculture ministries regarding production and demand data. Import permits should have been issued at least two months earlier. The production data they relied on were inaccurate, which has destabilized the market.”
The former Director General of the Directorate of National Consumer Rights Protection questioned: “How can there be a shortage when production is high?”
He added: “Because potato production increased, prices remained stable despite attempts to raise them. But now local onions have virtually disappeared from the market.”
According to him, “Avoiding onion imports under the pretext of ensuring fair prices for farmers was a serious mistake. The product is no longer in farmers’ hands — it’s now with the middlemen.”
Bd-pratidin English/ ANI
