Supply shortfall pushes onion prices up

Onion prices have increased by Tk 10-20 per kilogram in both retail and wholesale markets across the country in the last one week because of a “supply shortfall”.

Importers and sellers said the supply of Indian onions fell significantly during the Eid vacation, when imports remained suspended for about nine days at a stretch.

Another reason is importers are paying extra because of a significant rise in onion prices in India after floods hit several states of the country recently. 

The price of imported onions rose from Tk 35-40 a week ago to Tk 50-55 per kg now. Local onion is also selling for almost the same price, but it was Tk 10 cheaper earlier.

Meanwhile, buyers have been disappointed by the sudden price hike.

Najma Jahan, a housewife in Chattogram, said, “I bought 1kg of onion for Tk 35 only six days ago; now they are taking Tk 55. It is unacceptable.”

About the market situation, Mohammad Kushum, a wholesaler in Dhaka’s Karwan Bazar, said the supply of Indian onions went down remarkably in the last seven to eight days. 

“This variety has a significant influence on the market. Its price went up due to a supply shortage, which eventually had an impact on the overall price of onions,” he added.

Our correspondent in Dinajpur reported that import and export activities through Hili Land Port under Hakimpur upazila remained closed for nine days, from August 10, on the occasion of Eid-ul-Azha and Independence Day of India. 

The port operations resumed Monday. 

Harun Ur Rashid, president of Import and Export Group of Hili Land Port, said the suspension of imports created a big negative impact on onion supply across the country.

“Although the import is going on in full swing now, the supply shortage still remains. But we think that the market will be normal within a week.”