Onion Prices Soar to 150 Taka—Government Rushes to Open Imports!

The Government of Bangladesh has decided to grant permission for the limited import of onions from Sunday in an effort to stabilise the market, which has seen a rapid and sustained price surge over the past week. According to an official notification issued on Saturday by the Ministry of Agriculture, the authorities will begin issuing import permits—known locally as IPs—on a strictly controlled scale.

Under the new arrangement, a maximum of 50 import permits will be issued each day, with each permit allowing the importation of no more than 30 tonnes of onions. This measure is intended to ensure a steady but manageable level of supply, preventing a sudden market shock while addressing the escalating shortage.

The ministry further clarified that only those importers who had already applied for import permission after 1 August will be eligible to reapply. Each importer will be allowed to submit only one application, preventing the possibility of stockpiling or market manipulation by influential traders. These approvals will continue until further instructions are issued by the authorities.

The decision follows a steep and concerning rise in onion prices in the capital Dhaka, where the retail price has climbed by 20 to 30 taka per kilogram in just one week, surpassing the 150-taka mark. Traders informed national daily newspapers that the supply of early-season onions has not yet reached the market, while the government had not been issuing new import permits for several months. This combination of delayed domestic supply and restricted imports contributed significantly to the ongoing spike in prices.

The government had previously hinted at the possibility of authorising onion imports. On 9 November, Trade Adviser Sheikh Bashir Uddin told reporters that if the market failed to self-correct and prices continued their upward trajectory, the authorities would be compelled to open the market to imports. He also emphasised that once prices stabilised, further import approvals would not be necessary.

This year’s situation is particularly sensitive given the heightened volatility in global commodity markets and the growing pressure on domestic agricultural production due to adverse weather patterns. Experts have warned repeatedly that disruptions in supply chains, combined with shifting consumer demand, could contribute to further instability if corrective action is delayed.

Market analysts believe that the government’s latest decision, though modest in scale, will help calm the market by signalling incoming relief. They expect that even the announcement of import approvals will discourage speculative stockpiling and may lead to some downward adjustment in prices before imported onions reach local wholesalers.

Consumers, however, continue to express frustration. Many residents of Dhaka and surrounding areas have noted that onions—an essential household staple—have become increasingly difficult for lower-income families to afford. A rise of more than 150 taka per kilogram is seen as significant, especially during a period of broader inflation and rising living costs.

Officials at the Ministry of Agriculture said they will monitor the market closely in the coming days. If the limited import arrangement fails to stabilise prices, additional measures—including increased permit quotas or temporary market interventions—may be considered.