The government of Bangladesh has taken steps to combat the escalating prices of onions in its domestic market by approving onion imports from nine countries, which notably includes Pakistan.
This decision, as outlined in a press release from the Ministry of Agriculture, aims to alleviate the pressure on local onion prices. Bangladesh intends to import a significant quantity of onions, with 11,820 tonnes slated to come from Pakistan.
In addition to Pakistan, Bangladesh will be importing onions from various other countries, including China (2,400 tonnes), Egypt (3,910 tonnes), Qatar (1,100 tonnes), Turkey (2,110 tonnes), Myanmar (200 tonnes), Thailand (33 tonnes), the Netherlands (four tonnes), and the United Arab Emirates (three tonnes).
The move to diversify onion sourcing comes in response to India’s recent imposition of a 40 percent export duty on onions, a measure aimed at stabilizing domestic onion prices. This decision by India has had a ripple effect, contributing to price hikes in Bangladesh’s retail and wholesale onion markets.
Pakistan has historically been a significant exporter of onions, although its onion production experienced fluctuations. It saw a substantial increase of nearly 37 percent between 2014 and 2021, reaching 2.3 million tonnes, but encountered a 10 percent decline in the 2021-22 season.
The reduction in production can be attributed to factors such as reduced exports and flooding in parts of Balochistan and interior Sindh, resulting in substantial losses.