Syndicate behind abrupt onion price hike in Magura

Middlemen traders in Magura are exploiting people by abruptly hiking onion price through forming syndicates despite no shortage in the local markets and the staple was sold to them at a fair price months ago after a bumper yield this year, growers say.

"We have sold onions to the traders at Tk 30 per kg about four months back," said Ajoy Biswas, a farmer in the Kalundi village of Magura's Sreepur upazila. He added that now the farmers have to purchase onions at Tk 80 from traders as the essential commodity, used both as a vegetable and spice, is currently unavailable in their stock. "Actually onion profit is going through the roof."

Although there is no crisis of onion in the local markets, locals said middlemen are citing contradictory reasons over onion price hike and alleged that they are exploiting the people in the name of rainfall.

Department of Agricultural Extension (DAE) in Magura sources said they brought 12,930 hectares of land under onion cultivation in the district which secured a bumper yield of 199,347 tonnes (MTs). Harvesting the crop was completed about four months ago.

Mofizur Rahman, an NGO worker of police lines area in Magura town, said, "Onions were being sold in the local market at Tk 50 seven days back. He added that the price has now skyrocketed to Tk 80 per kg. "There is no shortage of onions in the local market. But, traders are hiking the price by forming syndicates due to monitoring weakness."

Tilam Hossen, an onion wholesaler of Dhaka road area in Magura town, said, "The supply of onion has fallen in the market due to rainfall. We are purchasing onion at higher price from farmers. Consequently, we are selling onion at a hiked price."

On the other hand, Aminul Islam, another trader of Dhaka road area in Magura town, said, "We are purchasing onions from Hili (Dinajpur)." He said that they are now purchasing onion at Tk 60 per kg as against Tk 40 a week ago as onion price has jumped in Hili recently due to the restrictions in Indian onion imports.

Onion grower Aminul Kazi of village Kachundi under Magura sadar upazila said, "We have sold onion to the wholesalers about four months back.

Actually onion is now under the occupation of middlemen. They are dominating onion market and exploiting commoners."

When contacted, Assistant Director Shajal Ahmed of Consumers Rights Protection Directorate in Magura said, "Onion price jumped after severe rainfall. But we are monitoring in a regular way and the price is gradually falling down."

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