Onion prices coming down at the pace it went up last year

Dhaka, March 01 – The way prices of onion had shot up at the good part of last year, the same way its prices now are getting cheaper since last week, according to the traders. However, the price is still reeling at the high end if it is compared with the prices that were quoted in the month before the onion crises started last year.
Visiting different kitchen markets in the capital including Karwanbazar, Malibagh, Mirpur-2 and Rampura journalists found that local onion was retailing at Tk. 60-90 per kilogram (kg).
Onion from Myanmar retailed at Tk70 a kg, while those from China at Tk60-80 per kg, Pakistani onion at Tk700-90 per kg and Egyptian onion Tk70-80 a kilo. A week earlier, these varieties sold for Tk90-120 per kg.
At wholesale markets, local onion sold for Tk55-65, while its Myanmar variety for Tk70-75 per kg, Chinese onion for Tk50-60 per kg, Pakistani ones for Tk55-60 per kg and Egyptian onion for Tk55-70 per kg.
According to Trading Corporation of Bangladesh (TCB), onion prices are still 211% higher than what they were last year. TCB data also showed that local onion was selling below Tk 100 per kg in Dhaka last two days, the first time since October last year.
Rubbel Hossain, an onion wholesaler at Karwanbazar told journalists that the supply of local onion was huge as the variety had hit the markets, selling at Tk55-65 per kg. The price of Murikata variety has also come down.
“After hearing the news that India will begin exporting onion to Bangladesh, prices come down, he added.
However, some traders observed that although price drop would benefit retail customers, farmers would not get fair price for their produce.
Consumer said that while prices dropped, they were still above their purchase capacity.
“This time last year, I bought onion at Tk25-35 a kg. Our onion market is import-dependent. We should focus more on local production,” she added.
According to traders, around 30-40% of onion is imported to meet local demands, the lion’s share of which comes from India.
The initial price hike started on July 2, last year one month before Eid-ul-Azha. From July 2 to October 31, the onion price fluctuated more than 30 times.
Meanwhile, Onion import from India may resume at Hili land port as soon as an official notification is issued, after India announced lifting its ban on onion export on Wednesday.
Mobarak Hossain, an onion importer of Hili Land Port, said they are yet to receive any letter from the exporters. “We expect India to start onion export soon. We are hopeful of importing onion from today (Monday) or Tuesday at the earliest.” he added.
On September 13, 2019, India prohibited exports of onions in the wake of its rising prices in the country. India’s commerce and industry ministry amended the export policy of onion from free to be prohibited.
As a result, onion prices started to soar in Bangladesh’s kitchen markets. On September 29, India banned onion exports altogether, which caused prices to spike in Bangladesh the next day, from Tk. 50 per kg a week earlier to Tk. 75 per kg.
later the the prices of local onions jumped to Tk. 250 per kg in the country’s kitchen markets (as of November), registering a hike by up to Tk. 227 per kg, though Journalists found some retail shops selling local onions at Tk. 280 a kg.
According to TCB that time the price skyrocketed more than 500 per cent. To tackle the crisis, the government had to import onion from Myanmar, Turkey, Egypt and few other countries.
Meanwhile, Consumers seem to have a relief at long last as the prices of onion have come down below Tk 100 following the withdrawal of a ban on its exports by neighboring India.
On February 26, 2020, India lifted the ban on onion exports, Food Minister Ram Vilas Paswan of India said on Wednesday, as prices of the bulb have fallen sharply in the last few weeks on expectations of a big crop.
Bangladesh Tariff Commission and the Ministry of Commerce said the country needed 26 lakh tons of onion annually, while the Department of Agriculture Extension (DEA) said the country produced 23 lakh tons. – Staff Reporter