Onion prices have skyrocketed by Tk25 per kilogram in the country's kitchen markets in a span of just 48 hours, which traders say was due to a supply crunch.
According to them, the India’s move to raise the minimum export price of the commodity and fall in local production due to unfavourable weather conditions were behind the jump
In a bid to curb onion price hike in domestic market, India has on Friday (Sept 13) has raised the floor price of export to $852 per tonne, a staggering hike from $250-$300.
The Bangladesh commerce ministry, however, says no onions were imported from the neighbouring country after India’s latest move.
To check the price on the essential commodity, Commerce Minister Tipu Munshi on Sunday (Sep 15) ordered the Trading Corporation of Bangladesh (TCB), the government’s trading arm, to start open market sales (OMS) of onion from Monday (Sept 16), which, however, didn’t start.
Sources say, the TCB has to procure onion before starting OMS as it has no stock of the essential commodity.
TCB spokesperson Humayun Kabir, however, told Bangla Tribune that they would start selling onions from Tuesday (Sept 17).
“Despite the instruction to start from Monday, we couldn’t. We expect to start it tomorrow,” he said.
Consumers will be able to buy two kg of onion each at five locations in the capital, the TCB official said before adding: “No decision has been taken yet regarding prices. But prices will be less than the existing market rate.”
Speaking to Bangla Tribune, Commerce Minister Tipu Munshi said that OMS of onion will start from Tuesday from trucks in front of National Press Club, Motijheel, Khamarbari, Mohammadpur and Mirpur.
He came down hard on traders for the price jump.
“The price of Indian onions has been raised. There’s reason for the price of local onions to go up. Moreover, onions from India at the new rate is yet to enter the country… unscrupulous traders are behind heating up the market,” he said on Monday (Sept 16).
The commerce ministry has convened a meeting with traders on Tuesday to discuss the issue, said Munshi.
“The government is weighing options like importing from Myanmar and Turkey. We have already initiated measures to ensure prompt import,” he added.
The Indian authority slapped $850 as minimum export price for per tonne of onion on Sept 13 to contain the price hike in its domestic market after flash floods in several Indian states disrupted production resulting in very low yield.
Since then, traders hiked prices and retailers in Dhaka city are asking between Tk 70 and Tk 80 for per kg of onion, which Bangladesh has to import to meet a portion of its requirement for short of domestic production.