New onion hits Dhaka markets, prices still too high

Amid recent price hikes and instability in onion market, freshly harvested "Murikata" onions have started arriving in Dhaka, bringing some relief to consumers.

Notably, these new arrivals are being priced slightly lower than the old local and imported onions in the Dhaka market.

A recent visit to several markets in Dhaka revealed that old local onions are being sold at Tk190-220 per kg, imported Indian onions at Tk180-200 per kg, and large-sized onions from China at Tk120-130 per kg. The newly arrived Murikata onions, however, are being sold at Tk140-160 per kg, offering a more affordable option.

This price difference has led many consumers to switch to the new local onion. The Ministry of Agriculture, in a circular issued on Sunday, confirmed the arrival of Murikata onions in the market and expressed hope that an increased supply of these onions would contribute to an overall reduction in onion prices.

Babul Mia, a wholesale onion seller at Karwan Bazar, said that the new local onions entering the market were sold at Tk130-140 per kg in the wholesale sector. This competitive pricing has generated significant demand among both retailers and consumers, given its lower cost compared to older local and Indian onions.

The onion market saw a spike in prices on 8 December, following a decision of India's Directorate General of Foreign Trade to impose an export ban on onions until 31 March next year. The ban led to an overnight surge in onion prices, with local and imported varieties reaching Tk190-220 per kg.

Shafikul Islam, a seller at Sofik Store in East Rampura, highlighted that he was selling imported onions at Tk190 per kg and local onions at Tk200 per kg. Grocery stores in Segunbagicha Kacha Bazar were observed selling local onions at Tk200-220 per kg and Tk190-200 per kg for imported onions.

The government has also taken the initiative to import some 52,000 tonnes of onion from India against the LCs opened earlier in a bid to curtail the price of such an essential item in the local kitchen market. The Ministry of Commerce has already sent a letter to the Bangladesh High Commission to take the necessary action in this regard.

Meanwhile, the Directorate of National Consumers' Rights Protection has taken stringent action against 80 establishments across the country. Through market raids conducted by 43 teams, fines totalling Tk3,70,500 were imposed for selling onions at inflated prices.

The Ministry of Agriculture provided insights into onion cultivation, noting that about 50,000 hectares of land are dedicated to cultivating newly harvested onions annually, producing approximately 8,00,000 tonnes. This sustains the onion supply until the main production season in February-March.

Additionally, the cultivation of summer onions on 500 hectares is expected to yield about 50,000 tonnes this year. Despite the country's impressive onion production of 2.6-2.8 million tonnes, post-harvest losses exceeding 25% contribute to periodic shortages in the market.

The Ministry of Commerce highlighted that the demand for onions in the country is 2.8 million tonnes, of which 85% is produced domestically. The remaining demand is met through imports, primarily from India. The annual decision by India to restrict or halt imports triggers market instability in Bangladesh. Notably, 7,05,000 tonnes of onions have been imported since 5 June.