A sudden hike in the price of onion in the local market has puzzled the consumers who are already struggling with unbridled prices of key essential commodities.
The prices of local and imported onion almost doubled on Saturday on the news that India has extended its ban on onion export until March 2024.
The FE correspondent visited Karwanbazar and Mohammadpur kitchen markets and found local variety selling at Tk 220-240 per kg, up almost 100 per cent in a single day.
The imported Indian onion was selling at Tk 210 a kg with an increase of Tk 90 per kg, even some retailers were demanding Tk 220 or more per kg.
Prices of both local varieties and imported onions rose by Tk 80-90 a kg on average in Dhaka's retail markets in a day.
Since the quality of locally produced onion was not that good, most customers were seen buying the imported one.
A customer at Karwanbazar kitchen market said he got puzzled hearing such skyrocketing prices of the spice.
He said, "I'm in a mess. I purchased Indian onion at Tk 130 a kg on Friday morning but I bought it at Tk 220 a kg today (Saturday afternoon)."
"I thought prices won't increase since new onion is arriving in the market. So, I didn't stock the onion. But what happened now?"
"As the quality of imported onion is good and the price is lower, we prefer it," said the customer.
Traders who had a prior stock of onions were also taking advantage of the news and selling at increased rates.
In the meantime, retailers alleged that wholesale traders increased onion prices overnight on the grounds of an onion export ban by neighbouring India.
According to a notification issued by the Indian Ministry of Commerce and Industry on Thursday (07 December), it announced an extension of onion export restrictions until 31 March 2024.
It is believed that the Indian decision aims to bolster availability of onion in its home market to help prices stable before the Indian polls.
The notification outlines three conditions under which consignments of onions can be exported.
These include shipments where loading has begun before the notification, cases where shipping bills have been filed and vessels are already berthed or anchored for loading, and consignments that have been handed over to customs or entered customs stations for exportation before the notification.
The FE found some cash memos showing local onion sold at Tk 175-195 a kg and imported one at Tk 155-180 a kg at Shyambazar wholesale market on Saturday morning.
In November 2019, the price of local onion surged to Tk 300 mark.
The annual onion production in Bangladesh exceeds 3.5 million tonnes, with a demand for around 2.8-million tonnes.
Despite high production, the country relies on imports due to significant wastage caused by storage and management complications, amounting to 25 per cent or more of the total production.
The FE tried repeatedly to reach commerce minister Tipu Munshi for comment, but he could not be contacted.
DNCRP CONDUCTS DRIVE
BSS adds: The Directorate of National Consumer Rights Protection (DNCRP) has conducted a countrywide drive to stabilise onion prices and keep its supply chain intact.
DNCRP officials said four separate teams conducted drives in various parts of Dhaka metropolis.
Besides, divisional and district officials also led drives in kitchen markets of 54 districts to this end.
Such drives will continue until onion prices come under control, according to the officials.
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