Global onion prices surge 150%, local rates rise just 10%

Trade and Tariff Commission of the Ministry of Commerce said while the prices of onions and both refined and unrefined sugar rose sharply, the price of wheat declined. The domestic market did not fully reflect the extreme price hikes seen on the global stage.

Analysis of international market data reveals that onions experienced the most substantial price surge over the last six months. On 18 February, the international price was $108 per ton, but it leaped to $270 by 4 August.

This represents an increase of $162 per ton, or 150 percent. As a result, international onion prices have multiplied two and a half times since February, the highest growth among the listed products.

The sugar market also trended upward, with refined sugar rising from $406 per ton in February to $510.65 in August. This represents a nearly 25.8 percent or one-quarter increase within six months.

Meanwhile, unrefined sugar climbed from $312.83 to 380.95 per ton, meaning both categories of sugar saw price hikes exceeding 20 percent. In contrast, the wheat market told a different story, as prices dropped from $232 per ton in February to $217 in August. This resulted in a $15 per ton reduction, a decrease of around 6.5 percent.

Comparing these international shifts to the local market highlights a major disparity. Data from the Trading Corporation of Bangladesh (TCB) shows that local onion prices were Tk 50 per kg in February and rose only slightly to Tk 55 by August.

While global onion prices surged 150 percent, the domestic retail price increased by only 10 percent. Similarly, local sugar prices moved from Tk 98-105 to Tk 105-110 per kg, a growth of only 4.8 to 7.1 percent. Elements such as import costs, domestic reserves, sufficient supply, tariffs, and dollar exchange rates played a role in this difference.

Discussing the overall situation, SM Nazer Hossain, vice president of the Consumers Association of Bangladesh (CAB), told Agamir Somoy, “Although the price of onions in the country was supposed to increase due to the impact of the international market, it did not happen as the domestic supply was normal.”

He added, “Moreover, as the prices of other products were already abnormal, the traders could not take a new opportunity. When the price increases in the international market, the traders use it as a weapon to increase the price quickly; but in the case of a price decrease, that impact is not seen to be effective in the country at all.”