Onion import from Monday to boost supply as prices skyrocket

With the price of the onion nearing Tk 100 per kg, the government has decided to allow import of the kitchen staple, starting on Monday, to control the market.

The agriculture ministry made the announcement in an urgent notice on Sunday after being pushed by the commerce ministry to allow the imports for weeks.

Onion prices rose throughout May and reached Tk 80 per kg, double the cost one month earlier.

As the commerce ministry threatened to resume imports, the prices decreased slightly.

The prices rose again as the agriculture ministry refused to allow import of onions, citing the local farmers’ interests and saying domestic production was enough to meet the demand

Considering the recent spike in onion prices, the commerce ministry sent a letter to the agriculture ministry on May 14, urging the government body to allow imports of the popular cooking ingredient.

Then at a press conference on May 21, Agriculture Minister Abdur Razzaque said that onion prices should in no way exceed Tk 45 per kg.

Onion imports had been halted since March 15 earlier this year in a bid to ensure better prices for local producers.

Data from the commerce ministry shows that annual demand for onion in Bangladesh is above 25 lakh tons at present.

This year, the agriculture ministry claimed that production is about 34 lakh tons.

An official of the ministry, said although there is sufficient local production, almost 25 per cent of the total yield is wasted each year due to the lack of storage facilities.