The local markets in the country are witnessing a drop in onion prices with the arrival of the new harvest and some immediate initiatives of the government.
The government is scrambling to stabilise the onion price after it crossed Tk 200 per kg in the local market. Already Tk 11 lakh fine were imposed after conducting drives in 54 districts of the country in last two to three days.
However, the government has taken initiative to import some 52,000 metric tonnes of onion from India against the LCs opened earlier in a bid to curtail the price of the essential item. Commerce Secretary Tapan Kanti Ghosh has said that the ministry has already sent a letter to the Bangladesh High Commission to take the necessary steps in this regard.
It was reported from some districts in the country, including Faridpur, that the price dropped Tk 30 to 40 per kg for new onions and Tk 20 to 30 for old ones. Just days earlier, new onions were selling at Tk 145 to 150 per kg, while the older stock fetched around Tk 200 per kg.
Newly harvested Murikata and summer onions have started arriving in the local markets.
According to the Ministry of Agriculture, each year Murikata onion is cultivated in about 50 thousand hectares of land and the production is about 8 lakh metric tonnes. However, this year, summer onions summer onions were cultivated on about 500 hectors of land and the production will be about 50 thousand of tonners
The Murikata and summer new onions are now being harvested and coming in the markets. These onions will be available for over three months. After that main onion will start coming in the market and the production may be around 26 to 28 lakh tonnes.
The overnight rise in onion prices and some other commodities on Friday prompted the government immediate action. The government bodies concerned and the field-level administration stepped up measures to check the prices of the food items and increase their supply.
The officials of the Directorate of National Consumers’ Right Protection (DNCRP) were deployed to all kitchen markets in the capital so that the traders sell onions at the proportionate and reasonable rate they purchased earlier.
The DNCRP has been continuing its efforts to check the prices of onion and other commodities.
DNCRP Director General AHM Shafiquzzaman on Monday (December 11, 2023) said that the onion market is expected to get stabilise within the next week. “Newly harvested onion has already started coming in the local market. Onion hoarders will be brought under punishment if they don’t follow the government’s directives. Some hoarders behind the increase in onion prices have already been identified and the process is underway to identify the rest of the hoarders,” he said while speaking at a function.
The DNCRP DG also said that efforts are being made to find out who hid the onion and how the onion arranged in layers in Khatunganj and Shyambazar disappeared.
He said that already Tk11 lakhs fine had been imposed after conducting drives in 54 districts. “Though it has been possible to control the volatility in the meat and potato markets, the government is working to stabilise the onion market now,” he said.
AHM Shafiquzzaman also said, “I hope those who have hidden onions in different places will supply items to the market quickly if they want to avoid loss.”
Meanwhile, the deputy commissioners (DCs) across the country have been asked to ensure strict monitoring.
Chattogtram DC Abul Basar Mohammad Fakhruzzaman said that they are monitoring the kitchen market strictly. He said that most of those who are doing onion business in wholesale market Khatunganj and some other areas are commission agents and dealers.
He held a meeting with the importers and onion traders of Chattogram on Monday afternoon. The wholesalers Khatunganj were present in the meeting.
DC Abul Bashar Mohammad Fakhruzzaman issued warning against the traders who will be involved in illegal price hike of onion.
The business leaders of Khatunganj said that onion market is border-centric (Benapole, Bhomra, Sona Mosque) control. “We don’t have hands there. We sell onions according to the decision that comes from the border. Bangladeshi traders who have good relations with Indian traders at the border control these businesses. The government can break this syndicate if it wants.”
Meanwhile, in Faridpur, one of the highest onion-producing districts, markets were witnessing a drop in onion prices with the arrival of the new harvest. The new onion crop was being sole between Tk 120 and 130 per kg, compared to Tk 160 to 170 for the older stock, in Faridpur town and surrounding areas on Monday.
Anowar Hossain, an official of the Department of Agricultural Extension (DAE) in Faridpur; said that that onion harvesting was initially delayed due to waterlogging caused by cyclone ‘Michaung’. However, farmers have now partially resumed harvesting as the water recedes.
The DAE official, however, accused unscrupulous traders of manipulating onion prices following the export ban from neighboring India.
Rafiqul Islam, Deputy Director of Faridpur DAE; informed that Faridpur primarily produces three onion varieties-- winter Murikta, and summer Hali and Dana, with Murikta being the most widely cultivated. This season, Murikta onions were cultivated on approximately 5,500 hectares of land, aiming for a production of one lakh metric tones.
The price of onion in Bangladesh nearly doubled overnight on Friday after India has extended its restriction on onion export till March next year. The onion was selling at Tk 220 to Tk 240 per kg at retail market in and outside Dhaka on Saturday, which was Tk 120 on Friday.
In May 2022, the Bangladesh government halted onion import from India to support local farmers. India’s 2020 export ban on all onion varieties except cut, sliced, or in powder form was implemented to control rising domestic prices amid flood-related production losses.
The annual production of onion in Bangladesh exceeds 3.5 million tonnes, with a demand of around 2.8 million tonnes. Despite high production, the country relies on import due to significant wastage caused by storage and management complications, amounting to 25% or more of the total onion production.