Onions reach Tk 100 a kg despite ample supply

Local onion prices in Dhaka markets have surged to Tk 100 per kg despite adequate supply.

Retailers in Karwan Bazar on Friday were selling onions from Faridpur at Tk 90 a kg, while the produces from Pabna were sold at Tk 100.

The wholesale prices at Karwan Bazar’s M/S Matri Bhandar were Tk 82 a kg for Faridpur onions and Tk 85 for Pabna onions.

Local onions were sold at Tk 65-70 during this period a year ago. Before Eid-ul-Azha, good-quality local onions were selling for Tk 80 to Tk 90 per kg. Less than two weeks after the Eid, the prices have increased by another Tk 10 to Tk 100.

Customer Rahima Khatun was surprised at the price, expecting it to drop after Eid.

“When the prices increased before Eid, I thought they were going up because they are very necessary to cook meat from sacrificial cattle. Now the Eid has ended. How is it possible for the prices to rise past the level during the Eid?” she wondered.

Traders have some answers: increased demand during the Eid, some apply disruptions during holidays and rain, and high cost of imports from India.

Retailer Abdul Jabbar said, “Onion prices are currently high. Indian onions are selling for Tk 100 per kg in some places, so how can local onion prices decrease?”

Wholesaler Monirul Islam said onion prices were Tk 3 to Tk 4 higher two days ago. Prices are still above Eid levels when he had sold them for Tk 76 to Tk 80.

Abdur Rashid, who supplies onions from Faridpur to Karwan Bazar, said, "Onions are now priced at Tk 80 per kg in Faridpur, up by Tk 8 or Tk 10 per kg since Eid."

"Shortages require imports, but high LC costs and high dollar exchange rate have pushed Indian onion prices to Tk 90 a kg at the border and over Tk 100 at retail," he added.

Habib Khan, a farmer, said: "There's no shortage; onions are plentiful. The high dollar rate affects the cost of imported onions from Holland, Turkey, and India.”

“Indian onions are priced at Tk 90 per kg, so we won't sell for less. We'll maintain higher prices."

Both Rashid and Habib said onion prices are unlikely to rise further.