Onion price spirals

Onion price surged in Bangladesh markets within hours in the wake of India’s ban on the export of onion to other countries this afternoon.

The price of the key cooking ingredient has gone up around Tk 10 to Tk 12 per kilogramme at the wholesale markets this evening, multiple traders told The Daily Star.

Wholesalers of Hemayetpur and Genda in Savar, on the outskirts of Dhaka, said they sold onion at Tk 70 per kilogramme around 5:00 pm. And soon after the information of India’s ban, the price of the onion went up to Tk 82 per kilogramme.

Nurzahan Begum, a small trader in Savar, said she bought onion at Tk 80 per kilogramme from Genda wholesale market around 7:00 pm. When she visited Hemayetpur wholesale market, she found the onion was being sold at Tk 82 per kilogramme.

While visiting Karwan Bazar, our staff correspondent found onion is being sold there with similar wholesale rate.

Sabuj Mia, a trader, bought onion at Tk 80 per kilogramme from Shymbazar wholesale market in the capital and sold it at Karwan Bazar wholesale market at Tk 82 per kilogramme this evening.  

Golam Rahman, president of Consumers Association of Bangladesh, told The Daily Star Online that India has taken the decision to contain the onion price in its domestic markets to give respite to consumers, not for the inconvenience of Bangladesh.

He said traders hiked the onion price by a big margin in local markets after Indian imposed a restriction on its onion export recently.

“Right now, India has stopped onion export. With the current high price, the price of onions is not expected to differ after India's decision. Now, the price (onion) that businesses have increased (in wholesale markets) is only for added profit. It is irrational which has no logical ground,” he said.

He also said now the price will not come down, but there is no reason to increase the price as an initiative has been taken to import onion from Myanmar and other countries.

“In my view, if the government take action against the dishonest businessmen, then the price will not go up,” he said.

Meanwhile talking to The Daily Star, Humayan Kabir, spokesperson of the Trading Corporation of Bangladesh (TCB), said two ships from Turkey and Egypt with onion have already anchored at Chattogram port.

“The onion will be available in the market from tomorrow or day after tomorrow and then its price will come down,” Kabir said.

When asked about the government’s move to keep the price spiral of onion under control, he said TCB will engage a total of 187 trucks at different parts across the country for starting open market sales (OMS) of onion at Tk 45 per kilogram tomorrow.

As part of the initiatives, the TCB will operate the OMS at 35 places in the capital, the TCB spokesperson said adding that the operation of the OMS will be continued.