Onion prices keep soaring despite imports
Traders have attributed this price rise to short supply and high import costs.
The price of onions continues to soar at wholesale and retail levels despite importing around three lakh tonnes of the essential kitchen item in the last two months, alongside supplying local ones.
In a span of three-four days, the price has increased by Tk10-15 for the local variety of onions and by Tk5-10 for imported ones in the markets of the capital city.
Traders have attributed this price rise to short supply and high import costs.
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Haji Md Majed, an onion importer and wholesaler at Shyambazar, told The Business Standard, "There is a shortage of local onions. All the onions the farmers had are gone. Those that are available are now in the hands of wholesalers. Besides, the cost of imports has also increased. That is why the price is high".
However, traders were allowed to import onions from 5 June to meet this supply shortage. According to the Ministry of Agriculture, more than 2.99 lakh tonnes of onions have been imported in the last two months.
On Wednesday, onions sold for Tk75-80 a kg at retail markets in some areas of the capital, which was Tk60-65 a week ago.
Moreover, imported Indian onions sold for Tk45-50 per kg, which was Tk40-45 earlier.
Md Shariful Islam, a grocer in the New Super Market area, told TBS that if such a high price persists in the wholesale market, it has to be retailed for Tk80-85 or more per kg.
On Wednesday afternoon, per kg of onion was wholesaled for Tk75-77 at Karwan Bazar, local variety ones retailed for Tk75, and the large-sized ones sold for Tk80 a kg.
According to TCB's market analysis data, onions are being sold at around 77% higher price than the price of local onions in the corresponding period last year. The price of imported onions is 26.67% higher.
According to the Department of Agriculture, the annual production of onions in the country has been more than 35 lakh tonnes for the past few years, and the demand is around 28 lakh tonnes. Even though production is high, it has to be imported, as 25% or more of the onion produced is wasted due to storage and management complications.
Importers have received permission to import more than 12.34 lakh tonnes of onions in the last two months, of which 24.23% have been imported so far, said the agriculture ministry.
