Onion Crisis Highlights Weaknesses of Local Commodity Market in Bangladesh

Onions are dear to the cuisine of the sub-continent, so a shocking rise of 658% over the past year in the price of local onions alarmed consumers and has become a hotly discussed topic for the entire nation.[1] The steep rise has been attributed to several causes, such as a lack of imports from India, consumer panic and rumour-mongering, and even an artificial shortage created for profits. Although prices have been rising over the year due to spikes in demand caused by Eid-ul-Adha and lower Indian imports, the hike has been steepest over the past few months. Between July 2nd and October 31st, the price increased by over 400%. [2] Ultimately, the shortage could have been prevented with some foresight from importers, who were overdependent on Indian imports, and authorities, who did not prepare accurate forecasts of demand and supply and thus did not hold sufficient stock. The crisis has highlighted several flaws in the local commodity market which must be addressed. Indian onion ...