Following India’s decision to extend export restrictions on onions, the price of onions in Bangladesh nearly doubled overnight. On Saturday morning in the capital, local onions were being sold at Tk220, compared to Tk140 the previous day. Meanwhile, imported or Indian onions rose to Tk200 from Tk120-140 on Friday.
The Indian Ministry of Commerce and Industry’s notification on December 7 extended onion export restrictions until March 31 next year, setting a minimum export price at $800 and imposing a 40% export duty. The rationale behind this move is to enhance domestic availability and regulate prices. The notification outlines three conditions under which onion consignments can still be exported.
Badda grocery shop seller Mizan noted that onion prices surged in the wholesale market after India’s export ban, making onions both expensive and scarce. Due to the high purchasing rates, selling local onions below Tk220 became impractical for many sellers.
Shariful Islam, a vendor at Dilu Road, highlighted the impact on his daily procurement, stating that due to soaring prices, he could only acquire 15 kg of onions instead of the usual 1-2 sacks. Consequently, local onions were retailed at Tk220, and Indian imports at Tk200, compared to approximately Tk140 just a day earlier.
The commerce ministry in Bangladesh had announced price caps for essential commodities on December 7, including potatoes at Tk35-36 per kg, local onions at Tk64-65 per kg, and eggs at Tk12 per piece. Additionally, fixed prices were set for bottled soybean oil at Tk169 per litre, non-bottled soybean at Tk149, and palm oil at Tk124.
The Indian export ban follows a series of measures, including a 40% duty imposed by the Revenue Department of the Indian Finance Ministry on onion exports to Bangladesh in August. The Indian government also set a Minimum Export Price of $800 per tonne, effective from October 29 to December 31.
Bangladesh had previously halted onion imports from India in May 2022 to support local farmers, resulting in increased onion prices. India’s 2020 export ban on most onion varieties was implemented to control rising domestic prices following flood-related production losses.
Despite Bangladesh’s annual onion production exceeding 3.5 million tonnes, the country relies on imports due to significant wastage caused by storage and management challenges, amounting to 25% or more of total onion production.
