Onion shortages to rise despite production jump

An increase in local production has reduced onion shortages, but government estimates show shortfalls will go up gradually in the coming years.

Bangladesh was largely dependent on onion imports, with prices reaching an all-time high when India banned the cooking ingredient’s exports in September 2019. After that, the government strongly emphasised boosting domestic production.

Onion shortages were 8.66 lakh tonnes in the fiscal year 2019-20, which fell to 3.03 lakh tonnes in the next financial year.

But shortages will increase to 3.19 lakh tonnes in FY23, 3.29 lakh tonnes in FY24, and 3.4 lakh tonnes in FY25 despite the emphasis on local production, show estimates made by the Bangladesh Agricultural Research Council (BARC) and the Department of Agricultural Extension (DAE).

The demand in those years was estimated by calculating the population. Per head consumption was estimated at 45 grams, and 25 per cent of the production was considered perished.

The estimates show Bangladesh will produce 35.24 lakh tonnes of onion in FY25 against the demand of 29.83 lakh tonnes. Despite this, shortages will amount to 3.4 lakh tonnes as 8.81 lakh tonnes will perish.

“The estimations were made so that extra efforts could be given in the production of onion and other crops as imports became costly due to the Russia-Ukraine war, sanctions, and export bans imposed by some countries,” Habibur Rahaman Chowdhury, director (routine charge) at the DAE Field Services Wing, told The Business Post.

He said the government was determined to become self-sufficient in onion production. He further said the government wanted to meet 50 per cent of the edible oil demand through local production, which currently was below 10 per cent.

“Now our first priority is to boost oil seed and onion production,” added the DAE official.

Bangladesh produced 34.04 lakh tonnes of onion in FY22, which was around 11 lakh tonnes higher than the FY19 figure.

Despite this leap, shortages in FY22 hit 3.1 lakh tonnes because the demand was 28.64 lakh tonnes and 8.51 lakh tonnes perished.

Import dependency remains

Shortages are usually met by imported onion each year, with India being a major source.

Till May in FY22, 6.65 lakh tonnes were imported. Imports were 8.63 lakh tonnes in FY18, which increased to 10.07 lakh tonnes in the next fiscal year, the highest so far. Around 4.5 lakh tonnes were imported in FY21.

Prof MA Sattar Mandal, former vice-chancellor of Bangladesh Agricultural University, said a country cannot produce everything it needs and import is not a problem. He said consumers try alternatives when a product gets pricier.

“It is ok to import the necessary products when your economy is strong and you have money in reserves.”