Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
The wholesale prices of onion declined by Tk 25-30 per kilogram in Dhaka and elsewhere across the country on Monday, a day after allowing import of the key spice.
The retail prices, however, fell slightly by Tk 5.0 a kg, pulling back from the rocketing trend in the domestic market for the last one month.
On Monday, the Department of Agricultural Extension (DAE) granted permits to 210 importers who stated their intention to bring in 0.281 million tonnes of onion.
Traders at Shyambazar, the biggest wholesale market in the city, sold onion at Tk 58-65 a kg on the day, according to a spot account, while the retailers were selling it at Tk 90-100 a kg.
At Shyambazar, the FE found the local Taherpuri variety of onion was being traded at Tk 64-65 a kg and hybrids at Tk 58-60 a kg.
“Transactions are low as grocers and other retailers are waiting for further decline in prices,” said Sagor Hossain, a salesman of Bikrampur Bhandar.
The news on onion import has resulted in the fall of prices as traders with a lot of stock started releasing it in the market, he added.
A huge quantity of onion arrived at the wholesale market from Rajbari, Faridpur, Pabna and Rajshahi today (Monday), he said.
Narayan Chandra Saha, Shyambazar-based trader, said the prices at the markets in district headquarters declined by Tk 800-1,000 per maund overnight. He expected the retail prices to decline notably within the next few days.
The agriculture ministry on Sunday evening allowed import of onion as price of the spice hit a two-year high Tk 95-110 a kg.
On March 15 last, the ministry imposed import restrictions with the beginning of onion harvest to protect the interests of local farmers.
The Consumers Association of Bangladesh (CAB) vice president S M Nazer Hossain lauded the government’s latest move in this regard.
“Though the decision has come two weeks later, it would surely help bring prices within the reach of commoners if the ministries of commerce and agriculture ensure proper monitoring of the market,” he said.
At present, the onion prices in India hit its lowest in recent years amid record production of 31 million tonnes this year. India’s average export price was US$222 per tonne until May 2023 and the price is still lower, he said.
Taking into consideration the transport costs, the maximum cost should not cross Tk 32 a kg, he added.
The Bangladesh Trade and Tariff Commission (BTTC) should publish possible prices of imported onion on its website on a regular basis so that traders cannot make unethical profits, he suggested.
Value chain expert Prof Gazi M A Jalil said the traders shouldn’t only depend on the Indian market which is very uncertain as we experienced in the past.
“India’s sudden export ban in 2019 made the Bangladeshi onion market highly volatile in its history as the retail prices crossed even Tk 300 a kg in the September-October period that year,” he said.
Chattogram-based traders should also be encouraged to bring onion from Myanmar, Turkey, Egypt, China and other countries at competitive rates, he said.
The country has an annual demand for 2.6-3.0 million tonnes of onion while it imports 0.4 million to 1.1 million tonnes depending on its local production and availability, according to the commerce ministry.
Bangladesh’s onion production declined to 2.39 million tonnes in FY’23 from 2.7 million tonnes in FY’22, according to primary estimates of the Bangladesh Bureau of Statistics (BBS).
Our Chattogram correspondent adds: The prices of onion decreased both at the wholesale and retail markets in Chattogram on Monday.
The prices at the wholesale markets of Khatongonj, Asadgonj and Chaktai ranged between Tk 70 and Tk 80 per kg while in the retail market it was Tk 100 per kg.
The wholesale prices decreased by Tk 900-1,000 per maund, said a wholesale trader at Khatongonj.
Market sources said, the price of per KG onion was Tk 110 a kg in the retail markets on Friday while it was Tk 90-95 a kg at the wholesale markets in the port city.
However, it declined to Tk 70-80 a kg at the wholesale markets on Monday while the retail price came down to Tk 90 a kg.
Sources said the importers were trying to sell out their stocks before the arrival of imported onion.