Govt initiates necessary steps

The government has taken initiative to engage the line ministry/different state agencies in ensuring smooth supply of onion in the market, officials said.
It has also asked the authorities concerned to take effective measures for speedy release of onion from different ports to keep the spice prices within the buying capacity of the common people.
It has instructed the central bank to ask the scheduled banks for extending their required cooperation in opening letters of credit (LCs) by onion importers.
Besides, the government has asked the agriculture ministry to issue import permission (IP) and required quarantine certificate.
The ministry has, however, asked the deputy commissioners to hold meetings urgently with the local importers for encouraging them to import sufficient onions.
It has also instructed the DCs to send progress reports on the meeting decisions by reviewing the stock, supply and prices of onion within seven days.
The instructions came following the sudden hike in onion prices in the local market, a senior official of the ministry said.
The prices of the item, which shot up by around Tk 20 per kg at retail level in the last few days, remain unchanged at previous level, according to trade sources. Local onion was sold at Tk 60-70 a kilogram on Tuesday which was Tk 40-50 per kg a week back.
Imported onions were retailed at Tk 45-55 a kg from Tk 30-40 a kg earlier.
Trading Corporation of Bangladesh (TCB) recorded a 40-54 per cent hike in onion prices in a week.
Traders concerned said a surge in import costs as well as low domestic production is leading to such a hike.
The commerce ministry on Tuesday sent letters to the agriculture minister, Bangladesh Bank (BB) and port authorities for taking necessary steps soon in this regard, a high official said.
It has also asked them to take immediate steps to ensure that the supply of the key item is not impeded anyhow, he added.
Letters were sent to the Chittagong, Mongla and inland port authorities to take next course of action for release, loading and unloading of imported onion on a priority basis to ensure its smooth supply in the country, the official mentioned.
The supply chain of essential commodity will be hampered if release, loading and unloading of such goods are delayed inside the country which may create multiple crises including artificial price hike of these items in the market, he said.
The commerce ministry has taken the decision to keep the supply chain of the key item unhindered across the country, a senior official who is dealing with the issue said.
He, however, said traders have been urged frequently to ensure speedy clearance of imported goods from different ports to help keep the prices of these items under control in the market.
As part of ensuring a sufficient supply of the essential spice in the country, the commerce ministry has already taken multiple measures to extend support to the import sector. Under the circumstances, an adequate supply of onion should be ensured to meet the growing demand of the country, the official also mentioned.
The agriculture ministry and Bangladesh Bank will take required actions from their respective sides for keeping the onion market stable throughout the year.
In September 2019, the country witnessed an unusual hike in the prices of some essential items, especially onion. Onion rose in price to nearly Tk 300.
The official added: "We will import required onion in advance if the country has a deficit of the item."
The deficit is usually met through import from India (around 90 per cent of the total).
Last year, the neighbouring country restricted onion export on account of production shortfall.
The government on Monday warned against hoarding and creating an artificial crisis of onion in the country.
The commerce ministry and Directorate of National Consumer Rights Protection (DNCRP) have strengthened further their market monitoring, according to a press release.
Trading Corporation of Bangladesh (TCB) will launch open market sale (OMS) of onion through trucks on September 13 to keep the prices and supply of the most-consumed item until newly harvested onion arrives in the market, the release added.

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