Why onion prices soar every November-December

In different markets across the capital, onions are now selling for Tk 110–120 a kilogram (kg). Just a month ago, the price was Tk 70–75. Every year, onion prices rise abnormally in October, November and December.

Prices start climbing in October and cross Tk 100 a kg by November and December. Then, like every other year, the government has to import onions from India to bring prices down. This same cycle has been going on for years.

The Bangladesh Trade and Tariff Commission (BTTC) recently reviewed the supply situation behind the rising onion prices in the local market. The same picture emerged there.

According to the tariff commission’s report, the average price of onions in November was Tk 115 in 2023, Tk 130 in 2024, and Tk 105 so far this November.

There are several reasons for the rise in onion prices between October and December. First is the dominance of middlemen on every level from production to retail. The second is a lack of storage facilities, third is the end of the growing season, and fourth is crop losses due to rain.

Abdul Halim, an onion trader at Dhaka’s Karwan Bazar, told Prothom Alo, “Every year onion prices rise abnormally from October through December. At the end of the season, farmers don’t have much stock left, so prices go up.”

The onion storage season runs from January to April. As there are no government storage facilities, farmers store onions themselves. The Tariff Commission has identified the lack of public storage as one of the key reasons behind the price hike.

The tariff commission noted that although the government has taken initiatives at different times to build onion storage facilities, there are currently no cold storage units operated by the government. Farmers have to store onions in their own homes.

November and December mark the end of the onion season. At this time, farmers’ stocks are low, leading to a price surge. The early variety of onions, known as ‘murikata’, will start arriving in the market in the second half of December, which is expected to bring prices down.

Currently, the variety of onion known as ‘hali’ is being sold in the markets. In Pabna, a maund (around 37 kg) of hali onions sold for Tk 3,700–4,000 on Saturday. The onion season runs from mid-December to April, and storage begins in April.

Onions change hands several times before reaching consumers. Middlemen profit at every stage, adding to the price each time. Their excessive profit-making is another major factor behind the seasonal surge in onion prices.

In onion-producing districts such as Pabna, Faridpur, Rajbari, and Meherpur, heavy rainfall over the past two weeks has damaged large quantities of early onion varieties. Stakeholders believe this has also contributed to the recent price hike.

Onion prices have been rising steadily since January this year. In November, the price exceeded Tk 100 per kg. According to the tariff commission report, the average price per kg in January was Tk 65, dropping to Tk 52 in February and Tk 42 in March. In April, it rose slightly to Tk 48.

These four months constitute the onion season. For the next three months, prices remained between Tk 55 and 60. In August, prices suddenly jumped to Tk 80 per kg and remained around Tk 75 for the next two months. This November, prices rose by 40 per cent to reach Tk 105 per kg.

Every year when onion prices rise abnormally, the government allows imports, and this year is no exception. The tariff commission has already recommended imports in letters sent to the commerce and agriculture secretaries.

India is Bangladesh’s main source of imported onions, accounting for 99 per cent of total imports. Bangladesh also imports onions from Turkey, Pakistan, Myanmar, China, and Egypt. In the last fiscal year, a total of 483,000 tonnes of onions were imported. Currently, there is a 10 per cent tariff on onion imports.

In the 2024-25 fiscal year, Bangladesh produced 4.4 million (44.48 lakh) tonnes of onions. However, due to storage issues and other losses, only about 3.3 million (33 lakh) tonnes reached the market last year.

The tariff commission recommends that every year during November–December, steps should be taken to curb the influence of middlemen to prevent excessive price hikes. It has also called for the establishment of government-run storage facilities to ensure year-round availability of onion.

Tariff commission Chairman Moinul Khan told Prothom Alo that farmers are not benefiting from the high prices. “It’s the middlemen who are taking advantage of the situation. Allowing imports will reduce their influence in the market and enable consumers to buy onions at fair prices,” he said.