Kitchen bags continue to feel heavier for consumers with the continued rise of onion prices for over a month, making a 200% hike during the period.
The prices of the essential cooking ingredient have already broken previous records. In September, both Indian and local onions were sold at the price of about Tk 50 per kilogram, but it jumped to Tk 140, and Tk 150 per kg respectively in Dhaka just Friday, this despite the government's measures to pull the reins on the price hike.
As of Friday (Nov 1), customers are having to pay Tk 150 to buy a kg of onion, while the price for broiler chicken is also Tk 150 per kg.
The price of the essential cooking ingredient started to rise since mid-September because of shortage in India, a major exporting country. India, on Sept 29 slapped a ban on onion exports effective till further order, to maintain domestic availability.
As Bangladesh was heavily dependent on India for onion imports, the local prices of the deciduous crop skyrocketed since then, due to the shortage in supply.
Profit-mongering traders increased the prices of both varieties of onion taking advantage of lax monitoring by the government, on Friday, the price went up to a record high for this year amid government promises and measures to keep them down.
On spot visit to different markets and superstores in the capital, it was found that Myanmar onions were selling for Tk 130 per kg, Indian ones at Tk 140, and local ones for Tk 150.
At the wholesale market in Kawran Bazar, the price was Tk 120 per kg for Indian ones while Tk 130 for local ones, and Tk 110 for the Myanmar variety, said traders.
Md Jahid, a wholesaler of Kawran Bazar said no onion coming from India is the core reason behind the price hike.
The same scenario was prevailing in Chittagong wholesale market on Friday. Indian onion retailed at Tk 120-130 kg, and Myanmar variety at Tk 105-112 kg at Khatunganj wholesale market.
On Tuesday (Oct 29), local onion sold at Tk 115 a kg, Chinese and Egyptian onion at Tk 85-88 a kg. Besides, Indian onion sold at Tk 115/kg. and Myanmar onion sold at Tk 95-105/kg at Khatunganj wholesale market.
On Oct 2, the wholesale prices of local, and imported onions ranged between Tk 60 and Tk 70 a kg.
On Oct 15, onions imported from Myanmar sold between Tk 70 and Tk 75 a kg, and Indian onion at Tk 80-85 kg at Khatunganj wholesale market.
Attributing the surging prices to the supply shortage, the wholesalers at Khatunganj market, the largest commodity hub of the country, hoped that the onion prices might come down with the arrival of big consignments.
Md Edris, general secretary of Hamid Ullah Market Traders’ Association at Khatunganj wholesale market said that the onion prices soared in India, and Myanmar as well.
“The supply against the demand is not adequate. The onion market will cool down with the entry of huge consignments. It will be brought within the purchasing capacity of ordinary people in December when new onion crop will hit the market,” said the wholesaler of Khatunganj.
The price, however, was a bit higher at the superstores in Dhaka.
Assistant sales manager SM Kibria at Swapno's Banasree outlet said they sold the onion at Tk 120-Tk 140 on Thursday, but the management asked them to put a new price tag of Tk 155 for local onions at their outlets.
At Swapno, per kg, local onion was selling for Tk 155, and Indian onion was selling for Tk 146, while the rate for the local onion at Agora was Tk 158, and that of local onion Tk 146. Meena Bazar was selling the local ones at Tk 158 per kg.
Although the Trading Corporation of Bangladesh (TCB) started the open market sale of onion across the country on September 30 at a subsidized rate of Tk 45 per kg, it had failed to make any significant impact because of huge demand compared to the supplies.
PRICE STARTED TO RISE FROM MID-SEPTEMBER
The price of onion was about Tk 50 in mid-September and jumped to Tk 75 to 80 a kg by the last week of the month. As India slapped a ban, the price of local onion on the following day jumped to Tk 110 to Tk 120, while Indian onion price stood at Tk 100 to Tk 110.
The price came down to Tk 70-90 a kilogram in the second week of October as traders started importing the item from Myanmar and Egypt, but it started rising again from the third week of October.
Narayan Chandra Saha, a wholesaler at capital’s Shyambazar wholesale market, said that onions imported from India almost disappeared from the market, but the price of Burmese ones came down slightly on Friday.
“The import from Myanmar is ongoing, but not sufficient. The Burmese onions were on sale at Tk 110-Tk 115 on Thursday, but dropped to Tk 105-Tk 106 on Friday,” he said.
The wholesaler expected that the price may come down a little bit once the products from Egypt arrives in the market.
The wholesaler said the skyrocketing price has also brought a change in the buying behaviour of retailers as they are buying less than usual, expecting that the price will fall further.
According to the state run TCB, the prices of local and imported onions were Tk 125-Tl130, and Tk 120-Tk 125 respectively on Friday, which was Tk 95-Tk 100, and Tk 90-Tk 100 a week ago.
There is a demand of 2400,000 tons of onions each year, while the country can produce about 23lakh tons but a major portion of it gets damaged. Bangladesh imports 700,000-800,000 lakh tons of onions every year to meet the domestic demand.
PRICE DECREASE DEPENDS ON ARRIVAL OF NEW LOT
To cover up the crisis, the government is importing 60,000 tons of onions from Egypt, and among those, the first lot of 10,000 tons is on the way to Bangladesh, said Commerce Minister Tipu Munshi.
Although onions are coming from Myanmar, it is not helping much as the import cost is Tk 75 a kilogram.
Wholesaler Narayan Chandra Saha expected that the price may come down in November if the ones imported from Egypt arrives in the market.
Last week, Prime Minister Sheikh Hasina said the crisis is temporary, and there is nothing to worry about, as it will not last for long.
President of Consumers Association of Bangladesh Ghulam Rahman said hoarding may have been taking place in some places, but supply disruption is the key reason behind the crisis.
“Despite the fact that onions are entering from Myanmar, the supply is not as high as compared to the ones from India, thus leading to skyrocketing price,” he said.
Meanwhile, the Directorate General of Foreign Trade of India, in a notification on Oct 28, allowed exports of onions from Bangalore till Nov 30 with certain conditions.
Under the conditions, 9000 tons of rose onions can be exported till November 30, but the exports will only be allowed through Chennai Port, reports the Times of India.
Since the onion import takes place in Bangladesh via land ports from India, Rahman urged the government to try to convince the Indian government to allow export of onions from Bangalore via land ports in order to bring some relief to the local market.
He also called upon the law enforcement agencies to beef up surveillance to monitor price, and hoarding in retail, and wholesale markets.