People feel pinch of onion price

This country is not very famous for keeping prices of essentials stable. Actually, businesspeople call the shot. Whether such people cannot be tamed because of their overwhelming representation in the country's parliament is a question that lurks quite ominously, though. This is the time of the year when vegetables in normal circumstances are grown less. It is the time when lands in many areas get inundated. But this year rains were the extra spoiler. Too much of rains like those of the past have had their adverse impact on the kitchen items. Every year the green chilli becomes costly because it is short in supply around this time.

However, chilli and other vegetables are not the only items to register price hike. Traders are smart people and they include a few that should have no plausible reason to be costlier. Onion has been one such item. Its price leapfrogged so energetically that within a week the price shot up to Tk 65 to 70 from Tk 40-45 a kilogram. Well, this they did on the pretext that India almost doubled the export price of the popular item. Earlier, India was instrumental in indirectly raising the price bar when it imposed a ban on onion export. At that time the price of onion in the market was Tk 30-32 but following the announcement of the Indian government's ban on onion, the market here grew jittery. Soon the price went up to Tk 40 -45 a kilo.

True, price of a commodity in the international market is likely to influence that of the domestic market. But no one country's unilateral move should have such a strong influence on the price level. It is moreover a flawed logic that price has to be raised so arbitrarily only because a neighbouring country has hiked its own. The fact is, domestic yield of the item was about 1900,000 tonnes as against its need for 2200,000 tonnes. The import of the spice-cum-vegetable was enough to meet the annual requirement. Reportedly, its stock is quite satisfactory. The government corroborates the fact.

In a situation like this, traders are trying to create an artificial shortfall with a motive of making a windfall profit. This, the government has been warning, is under watch. Actually, the threat worked initially. From Tk 65-70 a kilo, onion registered a slight fall to Tk 55-60. But then again it went up to the level of the previous week.

This time, though, no government statement followed and the impression is -and many fear -that the price may well hit the 100 mark prior or during the Eid-ul-Azha. This will be a gross injustice to the public who thought the government was really trying to rein in the price of onion, an item in great demand on the occasion of the coming festival. On the heel of onion price, those of spices too are likely to escalate. The negative influence of the government's inaction will simply act as a catalyst. Businesspeople will have their way all the same.

One wonders if so many seats in parliament were not occupied by businesspeople, whether there would be any difference in the government posture and action. Whatever that is, the fact remains that consumers here are at the receiving end, always.