Onion prices decline in city markets

Onion prices further declined in the city markets on Monday with the rates showing big gaps from one market to another.

Traders said some retailers were compelled to ask higher rates for the vegetable to avoid losses as they purchased the same at higher rates from the wholesale markets earlier.

Market observers said such arbitrary trend continues as government relaxed its market monitoring from December last with the declining prices of onion.

However, a commerce ministry statement, delivered on Monday, said market monitoring will be stricter and there is adequate supply of this vegetable. Both the production and import of the item are sufficient in the country, the statement mentioned.

Supply of newly harvested murikata variety increased notably in major wholesale markets including Shyambazar, Karwan Bazar, Moulovibazar and Beribadh-Rayerbazar on Monday.

Murikata was retailed at Tk 140-Tk 190 a kilogram (kg) in different areas of the city showing notable gaps of retail prices. The produce was sold at Tk 180-200 a kg on Sunday.

However, imported varieties were sold at Tk 60-100 a kg on Monday, almost static.

Meanwhile, wholesale prices of murikata onion also found remarkable fluctuations depending on markets.

The new onion was sold at Tk 122-128 a kg at Shyambazar, Tk 130-Tk 140 a kg at Karwan Bazar and Tk 155-165 a kg at Beribadh-Rayer Bazar on the day.

Asked, Narayan Chandra Saha, proprietor of Nabin Traders at Shyambazar, told the FE that prices started declining in Faridpur and Pabna regions.

We purchased murikata at Tk 110-114 a kg today (Monday) and after some time, we are selling those at Tk 122-128 a kg.

He said prices fluctuating in the districts level are affecting the city market.

However, the same produce was found wholesaling at Tk 130-Tk 140 a kg at Karwan Bazar wholesales.

Fakhrul Alam, a grocer at Lalmatia in Mohammadpur, was selling onion at Tk 190 a kg when it was being retailed at Tk 160-180 a kg at Adabor, Shyamoli, Farmgate and Tk 140-160 a kg by vendors who ferry such produce to homesteads through human-run vans.

Mr Alam said he bought onion at Tk 190 a kg on Saturday morning from Mohammadpur Krishi Market and on Monday was selling those at their purchased rates to minimise losses.

Consumers Association of Bangladesh (CAB) General Secretary Humayun Kabir Bhuiyan said the government relaxation in monitoring caused such volatility in the market.

He said government vigilance almost stopped after the prices of the vegetable declined in December after hitting all-time high prices in November.

He said new onion, traded at Tk 80-90 a kg at Faridpur region, was selling at Tk 140-190 a kg in the capital for lack of monitoring.

He said imported onion, which costs traders maximum Tk 38-50 a kg, was being sold at Tk 70-120 a kg.

The government should have proper data on the local production to set its import policy, Mr Bhuiyan said.

The Ministry of Commerce has already sent necessary instructions to the concerned departments and the district administrations across the country to keep price of onions and other essentials stable.

The country has a demand for 2.4-2.6 million tonnes of onion annually of which it produces 1.9 million tonnes, according to the commerce ministry sources.

The country also imports 0.9 to 1.2 million tonnes of onion annually, mainly from India.

[email protected]