Onion prices shoot up further

Onion prices have shot up further by Tk 10-15 a kg, augmenting sufferings of the consumers.

Local onions retailed at Tk 70-75 and the imported variety Tk 75-80 a kg in the groceries and kitchen markets on Sunday, marking a hike of Tk 10-15 a kg in a week and Tk 20 a kg in two weeks, market sources said.

According to the Trading Corporation of Bangladesh (TCB), the key spice witnessed a 20 per cent surge in a week while the current price is more than 50 per cent higher than that of a year back.

Monwar Ali, a grocer at Dolphin Goli of Kolabagan in the city, said wholesale prices witnessed a Tk 8.0-10 a kg hike at Karwan Bazar in the last two days.

I bought local onions at Tk 62 a kg at Karwan Bazar Saturday evening, he said.

Kamruzzaman Sohag, a Shyambazar-based trader, said prices in Faridpur and Pabna regions have increased with the end of season's harvest this month.

He said the mokam (local agriculture market) rate in Rajbari's Baliakandi was Tk 50-54 a kg on Sunday morning which was a maximum Tk 40 a kg two weeks back.

He said traders and big farmers in the districts are preserving onions in a large volume to gain more profits.

Abdul Gofur Biswas, a vegetable and spice trader at Sathia in Pabna, said traders in Pabna even incurred losses this year.

He said the price was above Tk 50 a kg in the first week of March at the farmers' end which later declined to Tk 35-38 a kg. The traders who bought onion earlier incurred losses, he added.

He said the big traders in Dhaka and Chattogram hold the key to the market.

Md Akmol Hossain, Agricultural Marketing Officer at Rajbari, said the price of seasonal 'haali' onion at the farmers' end was Tk 35-38 a kg this year, indicating a vibrant onion market.

He said the harvesting season just ended and many of the big farmers were still holding onions at their homes.

He said production might have declined as farmers in March plucked immature onions in large volume to get higher prices.

Field service wing director at the Department of Agricultural Extension (DAE) Md. Tajul Islam Patwary said the climate was suitable during the onion season from November to March last.

"We are expecting that the production might surpass 3.6 million tonnes this year as additional 1,000 hectares of land came under farming than target," he said.

An official at the Plant Quarantine Wing said the traders got permits to import 2.3 million tonnes of onion in the last one year, but they brought only 0.7 million tonnes.

He said that import from India through private channels remained stopped for the last four months amid export ban by India. Imports from other countries like China, Turkey, Myanmar or Egypt also remained stopped for the last one month.

Meanwhile, the Indian government recently has allowed exports of 99,150 tonnes of onion to Bangladesh and five other countries - UAE, Bhutan, Bahrain, Mauritius and Sri Lanka.

To facilitate the export, the National Cooperative Exports Limited (NCEL) has reportedly been designated as the agency responsible for exporting onions to these countries.

The NCEL will source the onions from domestic producers through an e-platform at competitive prices.

The onions will be supplied to the nominated agency or agencies of the destination countries at negotiated rates, with 100 per cent advance payment, said the report.

Contacted, the commerce ministry officials of Bangladesh could not make it clear how much of onion Bangladesh is going to import from India in this latest development.

Earlier in the first week of this month, the Bangladesh government could buy 1,200 tonnes of onion from India which is being sold at subsidised rate through the Trading Corporation of Bangladesh (TCB).

Value chain expert Prof Dr Rashidul Hasan said the quota-based limited scale import through government channels leaves little impact on the market.

"However, the price hike of onion in the domestic market by such a higher rate is not logical at a time when the harvesting season just ended, and the production was also good."

He said that effective market monitoring - from the district hubs to Dhaka Karwan Bazar, Shyambazar wholesales1 - is very important for now to bring a check and balance in the market.

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