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Bangladesh unrest strains onion exports, disrupting regional trade & supply chains
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Monday, 12 January, 2026, 08 : 00 AM [IST]
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Our Bureau, New Delhi
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Political unrest and policy shifts in Bangladesh are putting renewed strain on the country’s onion export dynamics, with ripple effects being felt across regional trade and food supply networks. Ongoing domestic instability, rising prices and import-export policy uncertainties have combined to disrupt the once steady flow of onions, a key agricultural commodity for both local markets and neighbouring countries.
In recent weeks, Bangladesh authorities halted the issuance of new onion import permits through the Hili land port, a crucial gateway for produce from India, citing the need to protect domestic farmers and balance local market conditions. No new permits have been approved since early January, although previously sanctioned shipments continue to enter until the end of the month. Traders warn that this move could tighten supply further and push retail prices higher, potentially back toward the levels seen last year.
The hesitation around imports is partly rooted in efforts to support local producers after a turbulent market season marked by fluctuations in supply and high prices. Wholesale and retail rates have oscillated sharply, reflecting the interplay of seasonal production, policy decisions and broader economic tensions.
Beyond economics, the situation is compounded by political uncertainty inside Bangladesh, where unrest has disrupted normal commercial activity and created logistical bottlenecks at border points. These disruptions not only constrain the export of onions but also impact other traded food items, adding pressure on regional food supply chains and traders in border states.
For Indian exporters, especially in major producing regions like Maharashtra’s Nashik, the evolving scenario adds another layer of risk to cross-border trade planning. Exporters may need to adjust strategies as regulatory signals shift and market demand becomes more volatile.
Analysts suggest that stabilising trade will require clearer policy communication, improved post-harvest infrastructure and a focus on harmonising bilateral agricultural trade protocols — essential steps to prevent future supply shocks and protect both consumer affordability and farm incomes.
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