Market Manipulation Drives Up Onion Prices in Bangladesh

Although new onions have started arriving in the markets, the onion trade remains unsettled. Over 100,000 tonnes of old stock remain in the country, yet unscrupulous traders are creating artificial shortages to push prices up. Their aim is not to pressure the government to allow imports but to increase profits at the expense of consumers.

In the last two days, retail onion prices have risen by 30-50 taka per kilogram, reaching a maximum of 160 taka. In Kawran Bazar, local onions sold at 150 taka per kilogram. At Nayabazar, they were priced at 140 taka, while at Rampura wholesale market they reached 160 taka. At the end of October, the retail price of local onions was 70 taka per kilogram, and in late September, 60-65 taka.

Market sources say profit-driven traders form syndicates to hoard onions. Farmers sold their crops last season at fair prices, leaving little stock. Syndicate members now control the supply.

Dr. Jamal Uddin, Additional Director of the Department of Agricultural Extension, stated that there is no actual shortage in the market, and the syndicate is artificially inflating prices. SM Najeer Hossain, Vice President of the Consumers Association of Bangladesh, added that wholesalers and commission agents are hoarding onions.

The Bangladesh Trade and Tariff Commission also reported that middlemen are creating artificial shortages. The commission has recommended limited imports. Retail onion prices should not exceed 90 taka per kilogram, but current prices are over 115 taka.

KhaborwalaAJ