Bangladesh Onion Market: Imports Resume, But Retail Prices Remain Elevated Amid Structural Hurdles

The onion market in Bangladesh is experiencing persistent volatility despite government interventions to stabilize prices. After suspending onion imports earlier in the year, Bangladesh resumed shipments to curb surging prices, yet retail costs have refused to ease meaningfully. Over 2,200 tonnes entered the country via Satkhira land port, triggering a slight reduction in wholesale prices across major trading hubs (Shyambazar, Karwan Bazar in Dhaka, and Khatunganj in Chattogram). Still, kitchen markets in Dhaka see onions trading at a robust $0.68–0.72/kg—barely moved by the influx.

Industry actors point to entrenched structural challenges: ongoing strong demand, limited and inconsistent import volume, post-harvest losses, and chronic hoarding manipulate market conditions. Flooding and poor cold storage capacity have increased farm-level losses to over 20%, amplifying the already acute supply tension. These disruptions extend across the Bangladeshi food market, lifting prices of vegetables, eggs, and broiler chickens, further squeezing consumers in urban centers. Market experts warn that unless Bangladesh invests in better storage and regulatory reforms to counter manipulation, price relief remains out of reach until the next domestic harvest arrives. The onion narrative thus encapsulates broader food inflation woes and underscores the need for structural investments beyond short-term import fixes.

📈 Prices

Product	Type	Origin	Location	Delivery Terms	Latest Price (EUR/kg)	Weekly Change	Market Sentiment
Onion powder	grade – B	IN	New Delhi	FOB	1.33	0.00	Stable
Onion powder	white	IN	New Delhi	FOB	1.60	0.00	Stable
Onion powder	organic	IN	New Delhi	FOB	2.68	0.00	Stable
Onion flakes	organic	IN	New Delhi	FOB	5.15	0.00	Stable
Onion (fresh)	fresh	EG	Kairo	FOB	0.81	0.00	Stable
Onions fried	crispy	PL	Lodz	FCA	3.42	0.00	Stable

🌍 Supply & Demand

• After a temporary ban, Bangladesh allowed imports, bringing in 2,280 tonnes via Satkhira. Yet, import volumes remain insufficient to rebalance demand.
• Domestic demand is robust, with kitchen markets in Dhaka trading at $0.68–0.72/kg. Wholesale prices eased slightly to $0.55–0.59/kg, but the benefit has not reached retail consumers.
• Strong seasonality: The current period is marked by crop shortfalls due to adverse weather and lack of storage, inflating prices for onions and other fresh produce.

📊 Fundamentals

• Post-harvest losses exceed 20%, driven by heavy rainfall during the last harvest and insufficient cold storage capacity.
• Market instability is exacerbated by hoarding and speculative practices among traders, hampering supply transparency and fair pricing.
• Imports provide only a stop-gap solution; continued bureaucratic disruptions (e.g., the recent halt on August 21) undermine supply confidence.
• Food inflation extends to eggs, broilers, and vegetables, as inundated farmlands boost price volatility across food categories.

🌦️ Weather Outlook

• Ongoing monsoon rainfall in Bangladesh is expected to persist over the coming days, adding risk of further crop damage and delaying harvest logistics.
• Key onion-producing regions in India—another leading supplier—also face irregular weather, with both excess rainfall and dry spells impacting yields and regional export readiness.
• Temperatures remain high, increasing spoilage risks for onions in the absence of adequate cold chain infrastructure.

🌐 Production, Stocks & International Comparison

• India continues to dominate global onion exports, though recent weather volatility has led to more restrictive export policies, indirectly supporting higher regional prices.
• Egypt has emerged as a steady supplier, with competitive export prices (EUR 0.81/kg FOB, Kairo), but overall global stocks are tighter, especially as food inflation bites in other importing countries.
• Bangladesh remains reliant on imports for balancing short-term supply, but lacks strategic reserves.

📆 Trading Outlook & Recommendations

• Short-Term: Retail prices in Bangladesh are likely to remain elevated until fresh domestic harvest arrives; import market will see sporadic activity based on regulatory shifts.
• Medium-Term: Investment in cold storage facilities and robust regulatory oversight remain key to stabilizing prices and reducing speculative behavior.
• Buyers: Secure supply contracts as volatility in local prices and unpredictable import policies may cause sharp price swings.
• Sellers: Favor spot market transactions in the current high-price environment, especially if holding power is limited by lack of storage.
• Hedgers: Consider forward hedging for onion powder and flakes, as processed forms are less sensitive to short-term volatility.

🔮 3-Day Regional Price Forecast (Dhaka Wholesale Market)

• Day 1: $0.57–0.60/kg (slight firming on low arrivals, intermittent imports)
• Day 2: $0.57–0.62/kg (weather disruptions, tight stock levels keep prices elevated)
• Day 3: $0.56–0.60/kg (imports could briefly ease prices, but upside bias persists)