Protests have erupted in Bangladesh and India over skyrocketing onion prices. The high prices are a result of the onion shortage in India, and the export ban that was subsequently imposed. However, this situation also has consequences for the price in the Netherlands.
The Prime Minister of Bangladesh, Sheika Hasina Wajed, has now also intervened in the issue. She reports that she no longer includes onions in her dishes. A state-owned company in the country now provides additional imports, including from Myanmar, Turkey, China and Egypt.
Additional imports
At an earlier stage, 80 containers of onions from the Netherlands and other countries were purchased. Wednesday, November 20, also has the government of India private to import an additional 120.000 tons. It is interesting to mention that India is one of the largest exporters of onions in normal years.
Bangladesh's largest opposition party has meanwhile organized protests. According to this party, the onion shortage is mainly due to the current government. However, India is the 'real reason' because a large part of the onion crop has been lost due to monsoons.
Record prices in Bangladesh
Due to the onion shortage, onion prices in India are at record highs. That is why protests are also being organized in India. Since India's export ban, prices in Bangladesh have risen sharply. The price for 1 kilo of onions is normally about €0,30, but it is now €2,77. The government therefore now distributes the onions itself and sells them (with subsidies) to the poorest residents.
This resulted in additional demand for onions for Dutch onion exporters. Besides Bangladesh, there is also a lot of demand from other Asian countries that normally get onions from Indonesia. This causes the price of red onions to rise in the Netherlands. Last week, the Emmeloord stock exchange recorded a price of €18,50 per 100 kilos for large red onions. The fine onions were €17,50 on the plate.