The government is exploring alternative markets apart from India for onion imports to keep supply and local prices of the bulb stable during the lean period from October to December each year, sources said.
The Ministry of Commerce recently tasked commercial counsellors of Bangladesh missions in China, Turkey, Egypt, Pakistan and Myanmar to submit urgent reports detailing exportable onion volumes, exporter names and export prices.
This decision follows an abnormal rise in onion prices after neighbouring India extended an export ban.
Following the Indian ban extension, local onion prices jumped by Tk 70-90 per kg, reaching Tk 200-240 from Tk 120 overnight.
A similar price surge occurred in 2019 due to another abrupt Indian export ban, with onions reaching Tk 290 per kg.
Currently, onion prices remain elevated in local markets. According to the Trading Corporation of Bangladesh (TCB), local onions were at Tk 115-160 per kg on Sunday, while imported ones fetched Tk 120-150 per kg.
However, early arrivals of local 'Murikata' seed onions and immature onions with leaves offer some price relief to consumers.
According to a senior commerce ministry official, the government's top priority is stabilising essential commodity prices. The official said prices of all onion varieties have been cooling off after the abnormal and overnight surge in early December.
Following India's sudden export duty increase in August this year, the agriculture ministry permitted onion imports from at least ten other countries.
Bangladesh consumes over 2.5 million tonnes of onion annually, with demand peaking at 0.40-0.45 million tonnes during Ramadan.
Official data, excluding crop loss estimates, shows onion production reaching 2.7 million tonnes by May 2023.
Imports from Egypt, Turkey, Myanmar, China, Pakistan and India meet the remaining demand.
© 2024 - All Rights with The Financial Express
