Onion woes keep easing as imports rejuvenate mkt

In a much-needed respite, the surge in onion prices witnessed a gradual decline in the wholesale market following the government permitted the import of this essential cooking ingredient on Monday.
The positive effects of allowing onion import were promptly observed on Tuesday, as the red-hot retail onion market experienced a notable calm, with the bulb's cost dropping by Tk10 per kilogramme in the capital city.
This decline in prices coincided with the arrival of onion-laden trucks from neighbouring India, breathing relief into the market, after per kilogramme of onion crossed Tk100 in retail on Sunday.
Within a span of just two days since the authorisation of imports, private importers brought in a substantial quantity of 1,288 million tonnes of onion through various land ports, including Hili and Bhomra.
Concurrently, officials from the Ministry of Agriculture have confirmed that they have approved a total import of 0.434 million tonnes in two days, while the country's annual demand typically ranges between 2.6 to 3.0 million tonnes.
On Tuesday, retail prices in Dhaka city saw a decline of Tk 10 per kilogramme, as grocers and vendors were selling the spice for Tk 80-90 per kilogramme.
Wholesale prices experienced a decline of Tk 30-35 per kilogramme at Shyambazar in the city, but only Tk 10-15 per kilogramme at Karwan Bazar and other major markets on Beribadh road.
Traders at Shyambazar were selling locally grown onions for Tk 55-62 per kilogramme on Tuesday, compared to Tk 58-65 per kilogramme on Monday and Tk 85-92 per kilogramme on Sunday.
Wholesale prices at Karwan Bazar and Beribadh remained at Tk 75-80 per kilogramme on Tuesday, resulting in considerably higher rates at the retail level.
Mainul Hoqe, an onion trader at Sadeq Khan Agricultural Wholesale Market in the Rayerbazar-Beribadh area, told the FE that he purchased 20 tonnes of onions from a trader at Shyambazar for Tk 80 per kilogramme on Friday.
"I'm already counting losses by selling them for Tk 75-76 per kilogramme," he said.
He mentioned that most wholesalers in the city, who had purchased onions from Shyambazar, were currently experiencing losses.
SM Nazer Hossain, vice president of the Consumers Association of Bangladesh (CAB), said the Trade and Tariff Commission (BTTC) should regularly disclose import costs, preventing unethical profits by importers.
He added that strict monitoring of both the local and imported onion markets was essential to provide relief to consumers.
According to the Bangladesh Bureau of Statistics, onion production declined from 2.7 million tonnes in FY22 to 2.4 million tonnes in FY23.
The commerce ministry reports that Bangladesh has an annual demand of 2.6-3.0 million tonnes of onions and imports 0.4 to 1.1 million tonnes to meet the supply-demand gap.

tonmoy.wardad@gmail.com