Who were behind the sudden hike in onion price?

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Shafiqul Islam
Published : 07:30, Oct 05, 2019 | Updated : 07:30, Oct 05, 2019

A man works at an onion wholesale market in the Kawran Bazar in Dhakaa, Bangladesh, July 24, 2019. REUTER/File PhotoMid-September, India raised the export cost of onions and at the end of the month, stopped exporting altogether. This has had a massive impact on the Bangladesh market and price of onions doubled. The onions sold by traders at Tk. 40-50 per kg became Tk. 110-Tk. 120 after Sept 29.
Traders, consumers say that the price has risen due to some unethical syndicates and opportunists. They feel that since there is large quantity of stored onions, the price cannot go up so fast.
It’s found that a class of importers had a role in the increase of the price of onions. Using the price hike in India as an excuse, they raised the rates in the local market.
The whole sellers also had a part as they raised the price despite having reserves.
Importers at Hili border have alleged that Indian businessmen also have a role in the sudden surge of onion price.
A few Hili based traders say: “The onion market in the country is controlled by Indian traders and we just do the business with commission.”
From sales to rates – everything is determined by them.
On Sept 29, before stopping the export, 268 tonnes were imported on 14 trucks; when Indian traders heard of the stoppage of export, they told importers not to sell below Tk. 80. From the following day, onions sold at Tk. 80 to Tk. 85.
When India suspended export of onions, local importers also stopped the sales of stored onions. As a result of a collusion between importers and sellers, a deliberate slowdown in sales was created which resulted in the crisis.
A seller from Kawran Bazar said: “When India stopped exporting, a trader called me from Benapole and asked me to either stop the sales or to raise the price.”
Another trader takes a moderate view, saying: “Importers are not the only ones creating unrest in the market, sometimes, middlemen or brokers spread rumours which do the harm.”
Commerce secretary, Md Jafar Uddin, said: “We will find out who created this artificial crisis and hiked the price of onions.”
Commerce minister Tipu Munshi, added: “A class of opportunists has manipulated the market and we are trying to identify them.”
The demand of onions in the country is 2.4 million tonne; of this, 2.37 tonnes were produced in the country in 2018-2019. A deficit was created when 30 per cent of the onions became rotten, which is around 750,000 tonnes.
To meet this deficit, 800,000 to 1 million tonnes had to be imported.

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