- Wholesale onion prices nearly double as lower arrivals tighten supplies
- Higher prices boost farmer returns; retail prices rise to BDT 50-60/kg
Bangladesh’s onion prices have rebounded sharply over the past two weeks after months of weak market conditions, providing relief to growers who had been selling below production costs. The price recovery has been driven by lower market arrivals following storage losses, weather-related spoilage, and reduced farm-level stocks, while consumers are facing higher retail prices.
Lower arrivals lift wholesale prices
Wholesale onion prices in major producing districts rose from BDT 750-900 per maund (37.32 kg) in mid-July to around BDT 1,500-1,700 per maund, with some markets trading at BDT 1,800-2,000 per maund. Market arrivals have declined by nearly 25% as excessive heat, rainfall, and inadequate storage facilities caused significant spoilage of stored onions.
Strong production offset by storage losses
Bangladesh produced around 4.9 mnt of onions during the 2025-26 season against annual demand of 4.5-4.6 mnt. Faridpur produced 751,635 t from 47,036 hectares, while Pabna harvested 995,367 t from 54,335 hectares. However, storage losses and post-harvest wastage have reduced effective market supplies, with hybrid onion losses estimated at 30-40% in some areas.
Higher prices improve grower profitability
Production costs exceeded BDT 32/kg, while onions had traded below Tk 30/kg for nearly four months, resulting in farmer losses. Agriculture officials indicated that prices above BDT 40/kg allow growers to earn reasonable returns. Retail onion prices have also increased to BDT 50-60/kg from BDT 35-45/kg two weeks ago.
Outlook
Onion prices are expected to remain firm in the near term as lower arrivals and storage losses continue to tighten supplies despite a surplus national harvest. Improved prices are likely to support farmer profitability while keeping retail markets firm.
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