\\\'Hoarding\\\' raises onion prices despite bumper yield

Onion prices in the markets are showing an upward trend in the harvest season despite a good output.
Traders' hoarding and market syndication, eyeing a windfall profit in the upcoming month of Ramadan, is causing the unusual hike, experts and officials opined.
Onion prices in the country normally remain at the lowest level between March and June, as it is the harvesting and primary marketing period of the item. But, the tradition is not visible this harvest season.
Local variety onion prices increased to Tk 32-35 per kg at retail level from Tk 25-28, and imported ones to Tk 26-30 per kg from Tk 22-25 in just ten days across the country, according to Department of Agricultural Marketing (DAM) data.
DAM data showed that in Dhaka, minimum price of local onion was recorded at Tk 25 per kg in mid-April, which was Tk 22 last year. It is a new record, considering the price scenario of last five years.
An official said onion production and import is very good this year, so there is no reason behind the increasing price trend of the produce in this season.
"Hoarding and market syndication is the main reason behind the price hike, both in urban and rural areas."
"Local variety of onion can easily be preserved for 7-8 months, while imported one for 3-4 months. Hoarding is going on to make exorbitant profit in Ramadan," he added.
Rabiul Hasan, an onion trader at Nowabganj Bazar in the city, told the FE that prices of the produce have increased significantly in the major hubs, including Pabna, Bogra, Rangpur, Dinajpur and Faridpur.
"Per tonne (1,000 kg) of local variety onion costs us Tk 21,000-21,500, including transportation fare, which has increased to Tk 29,000-30,000 in just ten days at Sujanagar in Pabna," he also said.
Chairman of Subaltern Communication Research Centre Delowar Jahan said imported onion rules the market, which is very much dominated by importers. It is the main reason behind the recent hike in onion prices in the peak harvesting season despite a good local production.
 "If you ask traders now, they will tell you that the price has increased in India, which causes the hike. But this is not applicable for local variety."
"Unscrupulous traders should be brought under strict monitoring to control the artificial crisis," he concluded.
The country has targeted to get 1.9 million tonnes of onion from 0.19 million hectares of land this year.
According to a DAE official, production is very good this season, as Pabna and Faridpur, the two major onion growing districts, provided bumper output.
He said the pace of onion production in the country got a momentum during the last few years. It increased to 1.5 million tonnes in FY 12, which was 0.8 million tonnes in FY 07. The total demand of onion is now 1.75-1.8 million tonnes.
Onion had a supply deficit of 42-45 per cent before 2010. But, it is now mitigated through import that annually costs the country minimum Tk 10 billion, he further said.