Onion prices still remain high in retail market selling at Tk 50 to Tk 60 per kg although the prices have decreased in the wholesale market.
On Tuesday, at Karwanbazar wholesale market, five kg of local onion was sold at Tk 190 and the imported one at Tk 170, while three days ago they were Tk 220 and Tk 180 respectively. At wholesale rate, per kg local onion costs Tk 38 while the imported one Tk 34.
But in retail market, a kg of local onion was selling at Tk 60 and the imported ones between Tk 45and 50, spot visits at several kitchen markets in Dhaka revealed.
"There is no sign of the price going down as Eid-ul-Azha is ahead. Besides, flood is another reason for high price of onion," said Md Masud, a trader at Karwanbazar.
Another importer and trader of the market Abdul Karim claimed that in the last three days, the price remained stable and feared that it would increase as the transportation cost would be high because of inclement weather.
Meanwhile, prices of garlic and ginger have fallen by Tk 10 to Tk 15 per kg in the wholesale market. But in the retail market per kg garlic is selling at Tk 230 to Tk 250 which is Tk 180 to Tk 130 in the wholesale market.
Similarly, per kg ginger is selling at Tk 200 to Tk 220 in retail market which is sold at Tk 140 to Tk 180 in the wholesale market.
Asked about difference between retail and wholesale, Md Matin, a trader at Panthapath, said: "We cannot preserve onion because of bad weather. So, to minimize our loss, we have to sell at higher prices."
He also blamed short supply for the price hike.
Onion sale through TCB in plans
The government is considering measures to rein in the price spiral of onion.
“Prices of onion increased due to supply shortage as imports from India slowed down. In addition, rain has had negative impact on the supply chain,” Commerce Minister Tipu Munshi told the media on Tuesday (Jul 16).
To monitor prices, especially those of onion and garlic, ahead of Eid-ul-Azha, the government already directed the deputy commissioners, said Tipu.
"We have come to know that the Indian government has withdrawn incentives against export of onion, which may be a reason for the price hike. I have already asked the commerce secretary to check it and take necessary steps," said the minister.
"We are closely monitoring the prices of essentials and if needed, onion will be sold at open market through Trading Corporation of Bangladesh (TCB)," said Tipu.