Prices of onions and chillies still remain high despite a surge in imports in recent weeks, insiders said.
On Tuesday, onions are being retailed at Tk 110-130 per kg, and green chillies at Tk 200-240 per kg.
Locally grown onions are priced at Tk 120-130 per kg in groceries and markets, while the supply side appears to be stable. Imported onions were being retailed at Tk 100-110 per kg on the day.
Current prices are 24-28 per cent higher than they were a year ago, according to the Trading Corporation of Bangladesh (TCB).
Despite a significant increase in imports over the last two months, onion prices remain static at their previous high levels.
Liaquat Ali Khan, Deputy Director of the Plant Quarantine Wing (Import), said that local importers have brought in nearly 93,000 tonnes of onions as of August 19, against import orders for 145,207 tonnes.
He also noted that nearly 21,000 tonnes of green chillies have been imported this financial year so far, compared to import orders for 57,000 tonnes.
Importers are much interested in bringing in foreign spices due to rising costs of local products, he added.
However, potato imports have nearly halted, possibly due to higher global prices, he said.
Ranajit Biswas, a trader based in Shyambazar, mentioned that prices of imported Indian onions have decreased by Tk 4.0-5.0 per kg over the last seven days, now selling at Tk 92-95 per kg.
He said importers in Chattogram have started bringing in onions from Pakistan, China, and Turkey, in addition to India.
The prices of Chinese and Turkish onions are Tk 55-60 per kg at wholesale market in Chattogram, he said and expressed the hope that retail prices of imported onions will decline with the entry of these cheaper varieties.
Farm economist Prof. Golam Hafeez Kennedy told the FE that the Bangladesh Bureau of Statistics (BBS) should release production data promptly to inform timely import policies.
He commended the decision to source onions from countries other than India and called for its continuation.
He also proposed that the Bangladesh Trade and Tariff Commission (BTTC) should regularly publish import costs for daily essentials to help reduce the price gap between import and retail levels.
He noted that there is a demand-supply gap for green chilies during the summer season, which should be addressed by providing adequate support to farmers.
According to the BBS, the country produces 0.65 million tonnes of green chilies annually, with only 24 per cent grown in the summer.
Onion production is expected to reach 2.5-2.6 million tonnes in 2024.
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