People line up to buy onion at Tk 30 per kg from a makeshift sales point at Abdul Gani Road in the city on Sunday, the first day of the open market sale of the key essential item supplied by the state-owned TCB — FE photo by KAZ Sumon The government started open market sale (OMS) of onion across the country from Sunday to keep its prices within the reach of the common people.
However, the prices of the spice witnessed further hike in India, the key exporter country, which might put impact on the Bangladesh market, said traders.
TCB-run OMS trucks sold onion and three other essential items from 40 points in the city on Sunday. Per truck sold 2.0-2.2 tonnes of onion on the day.
Humayun Kabir, spokesperson of Trading Corporation of Bangladesh, told the FE that corporation's dealers are using 275 trucks as sales points across the country of which 40 trucks in Dhaka, 10 in Chattogram, seven in Rangpur, five each in Mymensingh, Rajshahi, Khulna, Barishal, Sylhet, Bogura and Cumilla, three each in Jhenaidah and Madaripur and two each in the remaining district towns, including upazilas.
Apart from onion, he said, the dealers are selling sugar, soybean oil and lentil.
Onions are being sold at Tk 30 per kg, sugar at Tk 50 per kg, lentil at Tk 50 per kg and soybean oil at Tk 80 per litre, he said.
TCB-run OMS trucks got good response on the day until noon as many people thronged there to buy subsidised onion.
Dealers expect that the number of buyers might increase notably within a couple of days as many dwellers are yet to get information about OMS.
TCB recorded a 60-74 per cent hike in onion prices in last two weeks amid a surge in its prices in India.
In Dhaka, local onion was sold at Tk 60-70 a kg and imported Indian varieties at Tk 45-55 a kg on Sunday.
Indian media reported a further hike in onion prices at many key points of the country.
Indian newspaper 'The Print' on September 11 reported that onion price might cross 100 rupees (BDT 119) a kg in October next amid heavy rain that damaged early-Kharif season crop and Rabi stock of onion in India which is the main source of country's onion.
The report said over the last two weeks, wholesale and retail prices have more than doubled in several markets across India, including the largest wholesale onion market in Nashik.
Retail prices have touched 50 rupees per kg in Mumbai and Kolkata, and 60 rupees per kg in Delhi from the mid-20s range, it said.
"Similarly, the wholesale rate in Nashik's Lasalgaon, the country's largest wholesale market of onions, has doubled to 29 rupees a kg as of 8 September from 12 rupees a kg on August 28", the report said.
Humayun Kabir Bhuiyan, secretary of Consumer Association of Bangladesh (CAB), said Bangladesh is highly dependent on imported onion and India is the key importing source.
He suggested creating alternative source like that of last year, saying that import should be raised from other countries like Myanmar, Turkey, Egypt to tackle any possible crisis like 2019 when prices even touched Tk 300 a kg.
"Proper data on local production is also needed to initiate timely import policy which we lack."
He also praised the government's quick response to onion price hike by inaugurating OMS programme across the country.
Narayan Chandra Saha, a Shyambazar-based importer in the city, said import cost from India surged to $420-430 per tonne now which was hardly $200 a tonne in August.
The Indian government hasn't yet imposed any minimum export price (MEP), he said. "Before MEP imposition by India, we will have to raise import from anywhere."
Bangladesh produces 1.9-2.0 million tonnes of onion annually against the demand for 2.6-2.7 million tonnes.
The country imports 0.8-1.1 million tonnes annually mainly from India to meet the shortfall.
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