Bangladesh produced 4.4 million tons of onions in the 2024–25 growing season, exceeding the estimated demand of 3.5 million tons. Yet a shortage has now emerged, driving prices upward.
Prices of locally produced onions have surged at both farm and retail levels. Farmers in onion-growing regions said up to 30% of the onions stored after harvest perished. The remaining stock lost weight due to moisture loss during storage.
As a result, the market is now facing a shortage, despite the production of 900,000 tons in surplus.
Farmers interviewed in Pabna expressed satisfaction with the current higher prices. They said the recent spike has helped them offset the losses they incurred earlier in the season when prices were low. Traders said onion prices need to be profitable for farmers while remaining affordable for consumers. They also noted that frequent price drops show the market is not controlled by any syndicate.
Shahidul Islam, 55, a farmer from Dopmaj village in Santhia upazila, Pabna, said on November 8, “Out of 150 maunds of onion I produced in the previous season, only 20 maunds remain. Half of the stock which I kept to sell later has spoiled. The price has increased, but I don’t have much left to sell. I hope to recover my costs and the cost of spoilage.”
He sold onions at Tk 4,000 per maund that day. Prices had begun rising about 10 days earlier.
Immediately after harvesting, he sold onions at Tk 1,200 per maund, which he said was lower than his production cost. “Many farmers like me made losses because of the earlier low price, and because of spoilage. Now we are recovering those losses. The present (high) market price will encourage many to grow onion in the coming season,” he added.
Hijbul Bahar Sumon, 38, owner of Siam Traders — a supplier who collects onions for city markets — said sales from farmers’ stocks have fallen sharply since late October. “I used to procure 4 or 5 tons of onion on each of the two weekly market days, and now it is difficult to buy two tons. Most of the farmers are out of stock as many of the stocks perished. Only a handful of farmers still have stocks, and they are selling slowly,” he explained.
Abul Hashem, 60, a farmer from Ulat in Sujanagar — another major onion-growing hub — produced 1,500 maunds of onion on 28 bighas of land. He sold 1,100 maunds at low seasonal prices between Tk 1,600 and Tk 2,000 per maund. About 320 maunds from his stock perished. “I have only 80 maunds left to sell. Those who have stocks are selling slowly, which is why there is a shortage,” he said.
Siddikur Rahman, 55, a wholesale trader and owner of Sheikh Traders in Kashinathpur, Sujanagar, said stocks have fallen sharply and remaining stockholders are selling slowly, hoping for further price increases. “There is low supply. Only recently, we saw long queues of farmers trying to sell their onions at between Tk 2,200 and Tk 2,400 per maund. All of a sudden, the price increased to around Tk 4,000 a maund, and there are not enough onions,” he said.
Additional Director of the Agriculture Extension Department Dr. Jamal Uddin said there is no shortage of onions at the national level, though stocks are depleting quickly. “Locally produced onions will meet the demand until December, when the early variety will hit the market. Imports from India may reduce market price in the short term, but will discourage farmers from cultivating onion next time,” he noted.
Experts said onion production and sales involve thousands of farmers, making it unlikely that any cartel or syndicate is manipulating the market. If a cartel were involved, they pointed out, onions would not have sold at low prices earlier in the season.
Rushad Faridi, assistant professor of economics at Dhaka University, said speculative behavior among farmers is normal. “If farmers anticipate a price rise, it is very natural for them to hold products in inventory,” he said.