Steps to cool down onion market yield little results

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Talha Bin Habib A series of steps taken by the government have failed to leave any visible impact on the overheated prices of onion in the domestic market. Although the prices have declined slightly, it is yet to come down to the expected level, according to consumers. Wholesalers at the city's Shyambazar told the FE Wednesday that the volume of onion imports from India fell, as rains in southern India, from where the country mainly imported it left a portion of the essential commodity damaged. So the importers cut their imports from that country. "Trucks numbering between 120 and 125 entered Bangladesh from India with onion two or three days ago. But the number is now below 100," said Md Hafiz, a wholesaler at Shyambazar. At the wholesale market the local variety of onion was sold at Tk 78- Tk 80 per kg and the imported variety Tk 70- Tk 75 on the day. At the retail level the local variety was sold at Tk 85 per kg and the Indian variety Tk 80- Tk 82. However, retailers blamed wholesalers for the unusual hike. They alleged that the wholesalers were stocking the perishable commodity just ahead of the Eid-ul-Azha for making extra profit. But the wholesalers denied the allegation saying that inadequate imports were behind the price hike. At present, local traders have to pay US $ 905 per tonne for import of onion from India, according to importers. Customers in the city markets have vented their frustration over the high prices of onion. They called upon the government to strengthen the market monitoring so that unscrupulous traders cannot not raise onion prices at will. "The prices of onion in the market are high. So we have to spend extra money from our hard-earned income," Md Awal, a private service holder, told the FE at Santinagar Bazar in the city on Wednesday. The prices of imported onion have increased 226.09 per cent and the local variety by 146.27 per cent over the last one year, according to the Trading Corporation of Bangladesh (TCB). To reduce the prices of onion in the retail markets, the TCB has set a target to import five thousand tonnes of onion. So far it has imported 1,300 tonnes of onion. The TCB is selling its onion at Tk 55 per kg under its open market sale (OMS) programme. "We'll sell onion until October 13. It will resume after the Eid vacation," a high official of the TCB told the FE on the day. He said the TCB would invite an international quotation on October 22 for importing 1,000 tonnes of onion. Besides, the TCB calls tender every week for direct purchase of onion from traders, mainly in border areas. Earlier, the ministry of commerce (MoC) held talks on September 19 last with traders and on September 30 with intelligence agencies to review the price situation, stocks, supply and demand. A meeting will be held today (Thursday) at the MoC to review the price situation and supply of the commodity. Representatives from Bangladesh Tariff Commission (BTC), National Board of Revenue (NBR), Directorate of National Consumers Rights Protection (DNCRP), Trading Corporation of Bangladesh (TCB), importers and wholesalers are expected to attend the meeting.