New onion: Prices fall with retailing at Tk 60–70 per kg in Dhaka

The onion harvesting season is now under way across the country, with farmers bringing freshly harvested onions from the fields to the markets.

Prices of these new onions were high at the start of the season about a month ago. They have since fallen significantly.

On Monday, the onions were selling at Tk 60-70 per kg at three retail markets in the capital.

In contrast, at Santhia in Pabna, one of the country’s major onion-producing areas, retail prices stood at Tk 45 to Tk 50 per kg. This means onions are selling at Tk 15 to Tk 20 more per kg in Dhaka than at the production source.

Traders said that within the past three weeks, the price of onions has dropped by half. In early December, these onions were selling at Tk 130 to Tk 150 per kg. Prices began to decline thereafter.

Although onions are available in the fields, farmers are harvesting less due to the intense cold. With temperature ease, supply is expected to increase further over the coming weeks, which could push prices down even more.

This information was gathered today through visits to the Mohammadpur Krishi Market, Town Hall Market and Shewrapara Market in the capital, and through discussions with traders.

A visit to Mohammadpur Krishi Market in the morning showed that most vegetable and grocery shops were selling onions at Tk 60-65 per kg. Better-quality and larger-sized onions were priced Tk 5 higher, at Tk 70 per kg. A similar price trend was observed at Town Hall Market and Shewrapara Market.

Alongside the local onions, most traders are also selling imported Indian onions, priced at Tk 70 to Tk 80 per kg. Local onions from last year are not available at all shops, and their prices are relatively higher. Onions from last year are selling at Tk 80 to Tk 100 per kg, with premium-quality onions priced even higher.

However, onion prices at Karwan Bazar are somewhat lower than in other markets, as both wholesale and retail sales take place there. Retail prices at Karwan Bazar stood at Tk 50-55 per kg for local newly harvested onions and Tk 60 to Tk 70 per kg for imported Indian onions.

On Monday, onions were sold at Tk 250 to Tk 280 per five kgs at the wholesale level while Indian onions at Tk 330-350 at Karwan Bazar.

According to data from the state-run Trading Corporation of Bangladesh (TCB), during the same period last year, domestic onions (both new and old) were priced between Tk 50-85 per kg, while imported onions sold at Tk 60-80 per kg.

This indicates that current onion prices are broadly in line with those of a year ago.

The Prothom Alo correspondent in Bera, Pabna, reports that in Santhia upazila, often referred to as the country’s onion hub, the price of newly harvested onions has fallen by more than half over the past three weeks. About three weeks ago, onions were selling at Tk 3,000-3,200 per maund. On Monday, prices fell to Tk 1,400-1,600 per maund.

Farmers said that at this price level, they are barely managing to recover their production costs. Any further decline could result in losses.

Raja Hossain, a wholesaler at Boailmari Hat in Santhia, said, “Due to the severe cold, onion harvesting is still relatively limited. Even so, prices have dropped by more than half within three weeks. If onions come to the market in full swing next week, prices may fall further.”

He added that last year, at the very start of the onion harvesting season, prices had fallen to Tk 800 to Tk 1,000 per maund. Based on that experience, farmers this year are again worried about the prospect of substantial losses.