Onion prices still high in retail market

Prices of onion showed a slight decline in the wholesale market, but still remained higher in the retail markets on Saturday.

Local varieties of onion were sold at Tk 140-Tk 145 a kilogram (kg) and imported varieties at Tk 120-Tk 130 a kg in the retail markets on the day-Tk 5.0 to Tk 10 decline, according to the trading sources.

However, prices of onion plunged by Tk 12-Tk 15 a kg at Shyambazar wholesale market in last two days which traders attributed to the expected imports from India.

Haji Nuru Mian, proprietor of Pabna Banijjaloy, a Shyambazar-based wholesaler, said they were selling Burmese varieties at Tk 102-Tk 105 a kg which was Tk 114-Tk 120 two days back.

He said local variety was sold at Tk 105- Tk 112 a kg on the day.

Md Shahidul Islam, proprietor of Alhaj Vandar at the same market and an importer, said the expected imports from India helped ease the price to some extent.

He said many importers were expecting to open letters of credit (L/Cs) from Sunday to bring Indian onion from Chennai port.

After imposing a ban on export of onion on September 29 last, the Indian government on October 28 relaxed it and permitted export of 'Bengaluru Rose' variety of onion from Karnataka state only through Chennai port, according to media reports.

Mr Islam said they were expecting to import Indian onion which could be brought to Chattogram port within seven days.

The cost for Indian onion might be Tk 80 a kg at the wholesale market if we could manage importing the Rose variety, he said.

Narayn Chandra Saha, another Shyambazar-based importer, said if India continues its export (even through Chennai port) and other big private firms in the country could bring Egyptian onion as per their declaration, prices might decline below Tk 100 a kg within a week in retail markets.

Private company S Alam Group is likely to bring 50,000 tonnes of onion from Egypt this week, according to media reports.

Mr Saha said entrance of the early seed variety (locally known as 'murikta') from the domestic sources in the last week of this month would help further go down prices of onion.

However, Dhaka-based importers, who the FE contacted, could not confirm any concrete development of imports of onion from India.

Mr Saha said they could tell it on Sunday with opening of the banks that who were able to open L/Cs aiming to import the produce from India.

Our Chattogram correspondent adds: Khatunganj-based importers are yet to take any initiative to buy onion from neighbouring India.

Rather the importers are focusing more on imports from Myanmar, Turkey and Egypt considering competitive prices.

Burmese and Turkey onion is being imported at Tk 45-Tk 50 a kg now.

S Alam Group is importing onion both from Turkey and Egypt which is expected to enter the port city in the second week of this month.

A total of 0.25 million tonnes of onion will be imported by five private companies in the country this month through Chattogram Port.

Our Cox's Bazar correspondent adds: The country's top onion importers thronged Teknaf, the southernmost upazila of the country, to procure the produce from neighbouring Myanmar.

Importers and their representatives from leading trading houses of Dhaka, Chattogram, Cumilla, Bogura, Rajshahi, Rangpur, Narsingdi, Bhairab and Sylhet have gathered at Teknaf over the past one week.

Traders said on an average 1,000 tonnes of onion are being imported a day from Myanmar through Teknaf Land Port.

General Manager of Teknaf Land Port Jasim Uddin told the FE that local traders imported a total of 28,700 tonnes of onion from Myanmar in last one month.

"Another seven onion laden trawlers were waiting to unload 800 tonnes of onion in the Naf river at Saturday afternoon," he added.

On the other hand, imported onion loaded 40 trucks left the Teknaf land port for Dhaka, Chattogram and various destinations of the country over the past two days.

Bangladesh produced 1.9 million tonnes and imported another 1.1 million tonnes of onion in the last financial year (FY) 2019 against a total demand of 2.4 million tonnes, according to the Bangladesh Bureau of Statistics and the commerce ministry.

tonmoy.wardad@gmail.com

nazim07@yahoo.com

clicox121@gmail.com