The onion market in Bangladesh is experiencing volatility due to India imposing a 40% export duty on onions. This has led to rising prices in wholesale and retail markets, with expectations of further increases. Local traders are cautious about importing onions due to uncertainty about potential penalties. Despite a bumper onion yield, inadequate storage facilities and adverse weather conditions are causing significant wastage, accounting for about 20% of locally produced onions. Currently, onions are sold Tk.80-100 per kg in retail, and the price is expected to rise by Tk.5 per kg.
Cold storage facilities are crucial for preserving onions, allowing them to be stored for up to ten months without loss of value. However, these facilities require uninterrupted power supply, which is a challenge in Bangladesh’s current power-cut situation. The Bangladesh Cold Storage Association (BCSA) emphasizes the need for reliable power supply to prevent wastage of perishable items like onions. The government had plans for cold storage projects in onion-producing hubs, but bureaucratic delays have stalled their implementation. Addressing onion preservation issues is essential to stabilize the market, reduce losses for farmers, and enhance domestic supply chain resilience against external shocks.
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