Onions and shallots market in Bangladesh

Earlier Report Observations

The onion and shallot market in Bangladesh experienced notable shifts between 2018 and 2023. Starting from a high volume of 2.9 million tons in 2018, largely supported by substantial imports, the market contracted in 2019 as imports fell sharply. This drop in imports was partially offset by a rise in domestic production, attributed to expanded cultivation and improved yields. Recovery began in 2020, with the harvested area increasing by 7.4%, boosting local output. Supply chain disruptions from the COVID-19 pandemic further influenced market dynamics, contributing to a rebound in total market volume to 2.6 million tons.

From 2021 onward, the market entered a period of sustained growth. Domestic production jumped by 16% in 2021 and continued to climb, peaking at over 2.5 million tons in 2022. This expansion was supported by ongoing exports to several countries, though these remained a small portion of total output. A major turning point came in 2023 when India, a key supplier, imposed an export ban on onions. In response, Bangladesh diversified its import sources to include Myanmar, Egypt, and Turkey, helping to maintain supply. Consequently, the total market volume grew to 3.4 million tons in 2023, aided by higher imports of 888 thousand tons.

In 2024, policy measures aimed at stabilizing the market were implemented. Bangladesh lifted a 5% regulatory duty on onion imports and reduced other related tariffs to alleviate price pressures and shortages. Concurrently, the country faced an acute shortage of onion seeds, prompting government initiatives to boost off-season production through investments in cold storage infrastructure and climate-resilient seed varieties. India allowed limited onion exports to Bangladesh under government-to-government arrangements early in the year, easing some supply constraints amid ongoing market adjustments.

Production onions and shallots in Bangladesh

In kind, 2017-2020, K t

Between 2017 and 2020, Bangladesh ranked as the world's seventh-largest producer of onions and shallots.

Top producers of onions and shallots, 2017-2020

World map of production of onions and shallots, 2017-2020

Bangladesh's production of onions and shallots grew for the second year in a row. In 2020, the country produced 1 954 thousand tonnes, marking an 8.4% increase from the previous year. Over the 2017–2020 period, production rose by 4.7%, which translates to an average annual growth rate of 1.5%. The lowest output was recorded in 2018 at 1 738 thousand tonnes, when production fell by 6.9%.

Annual dynamics of production in Bangladesh in kind, 2017-2020, K t

Exports onions and shallots from Bangladesh

Exports in kind, K t

In 2020, Bangladesh's cross-border shipments of onions and shallots amounted to 0.1 thousand tonnes, representing a substantial 262.0% increase compared to the year before.

Annual dynamics of product's exports from Bangladesh in kind, 2017-2020, K t

From 2017 to 2020, Singapore was the primary and nearly exclusive destination for Bangladesh's onion and shallot exports in volume terms, accounting for 90.4% of the total.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Bangladesh in kind, 2017-2020

Exports in value, M $ US

In 2020, the value of Bangladesh's onion and shallot exports stood at 0.0 million US dollars, reflecting a 5.5% year-over-year decline.

Annual dynamics of product's exports from Bangladesh in value, 2017-2020, M $ US

Between 2017 and 2020, Singapore and Kuwait were the dominant markets for Bangladesh's onion and shallot exports in value terms, together making up 89.3% of total flows, with the remainder distributed among smaller markets.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Bangladesh in value, 2017-2020

Imports onions and shallots to Bangladesh

Imports in kind, K t

The data shows irregular fluctuations, pointing to a volatile market environment. Imports hit their lowest point in 2019 at 254 thousand tonnes, then peaked in 2018 at 1 155 thousand tonnes—a 4.5-fold difference. In 2020, Bangladesh imported approximately 688 thousand tonnes of onions and shallots, a sharp 170.8% rise from the prior year. The largest decline occurred in 2019, with a 78.0% drop.

Annual dynamics of product's imports to Bangladesh in kind, 2017-2020, K t

During 2017–2020, India was the almost exclusive supplier of onions and shallots to Bangladesh, absorbing 91.5% of total imports in volume terms.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Bangladesh in kind, 2017-2020

Imports in value, M $ US

The data indicates irregular changes, suggesting a volatile market environment. Imports reached their lowest value in 2019 at 97.5 million US dollars and their highest in 2018 at 290.9 million US dollars—a threefold difference. In 2020, Bangladesh imported 172.5 million US dollars worth of onions and shallots, a significant 76.9% increase year-over-year. The steepest decline was in 2019, with a 66.5% fall.

Annual dynamics of product's imports to Bangladesh in value, 2017-2020, M $ US

From 2017 to 2020, India remained the leading supplier of onions and shallots to Bangladesh in value terms, contributing 86.5% of total imports, while the rest was spread across numerous other countries.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Bangladesh in value, 2017-2020