In a bid to curb the escalating prices of onions in the domestic market the goverment has authorised the busines men to import onion from countries around the world, excluding India.
Agriculture Minister Dr. Md. Abdur Razzque made this announcement during a press conference held at his office in the secretariat on Monday.
The current onion prices have surged to unprecedented levels, with the cost of a kilogram ranging between Tk 70 to Tk 100. Responding to the price surge, the government granted permission to import onions as a measure to alleviate the situation.
However, only 300000 tonnes out of the initially permitted 1.3 lakh tons have arrived so far. This shortage is exacerbated by India’s imposition of a 40 percent tariff on onion exports, which is expected to contribute to further price increases.
Addressing the concern about potential onion price inflation, the minister expressed his uncertainty regarding market regulation.
He outlined two strategies to tackle the onion price crisis: boosting domestic onion production during the summer months and implementing advanced storage techniques to prolong the shelf life of harvested onions. The minister disclosed that summer onions have been cultivated across 18,000 hectares of land, with the harvest anticipated for late October or early November.
He also acknowledged that past years have seen onion price hikes during September and October, and he expressed hope that the government’s initiatives would mitigate such fluctuations. He emphasized that the government’s primary recourse to counter the situation is to encourage onion imports from countries such as Egypt, Turkey, and China. The responsibility of executing these imports falls under the jurisdiction of the Ministry of Commerce.
The minister underlined that while immediate solutions are limited, monitoring and regulating the market remain crucial. He extended an invitation to importers to begin sourcing onions from various global origins, offering Import Permission Orders (IPOs) for immediate action.
In response to queries about the feasibility of controlling market forces, Minister Razzaq highlighted the challenges of managing an open market economy. He pointed out that market dynamics are shaped by supply and demand, and while efforts can be made to influence prices, complete control is unrealistic.
Furthermore, the minister introduced a pilot project aimed at extending the shelf life of onions by utilizing advanced storage techniques. He shared that nearly 170 houses have been part of this initiative, resulting in promising outcomes in terms of onion quality and longevity. Minister Razzaq expressed optimism that if the pilot project proves successful, the technique could be widely adopted to ensure a consistent supply of onions in the future.
While acknowledging the impact of the rising dollar value on the current situation, the agriculture minister has indicated that the nation might experience several more months of difficulty before a return to normalcy is anticipated.
In conclusion, the government's decision to allow onion imports from global sources and its efforts to enhance domestic production and storage methods reflect its commitment to stabilize onion prices and secure a sustainable supply for the people of Bangladesh.