Onion woes continue despite widening sourcing options

Onion prices remained high in various city kitchen markets on Friday, even as the government greenlit imports of the bulb from an additional nine countries alongside India.
The local variety of the kitchen staple was retailing between Tk 85 and Tk 100 per kg, while imported varieties were being sold at Tk 70 to Tk 80 per kg.
In a matter of less than one month, onion prices surged from Tk 30 per kg to Tk 100 - a dramatic increase that has sparked widespread criticism and discontent.
After a brief pause of several months, the upward trend in red-onion prices resumed on August 19, triggered by India's implementation of a 40-percent export duty to safeguard its domestic market.
Subsequent to this development, local traders responded by driving prices higher.
Then the government permitted onion imports from nine countries: China, Egypt, Pakistan, Qatar, Turkey, Myanmar, Thailand, Netherlands and the United Arab Emirates.
However, the domestic market still rings out a supply-demand gap.
Selim Mia, a retailer at Kawranbazar in Dhaka, complained about an insufficient onion supply from wholesalers, which he said has driven up the prices.
The government's approval for import has yet to cool off the retail prices as the necessary procedures need time to be fulfilled, said onion trader Khalil Hossain, proprietor of Minhaj Trade.
"Even with the import greenlit, it will take some time for the imported consignments to reach the market," he added.
Furthermore, he cautioned that onion prices from the newly allowed countries are likely to be relatively higher, posing a potential risk of further price rises.
A consumer named Zakir Hossain shared his concern about escalating market prices, including that of onions.
"Many consumers like me find ourselves compromising on protein intake due to the high prices of nearly all items," he told the FE.
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