When consumers think the price of onion would come down in the market by the middle of December, a sudden price hike of the kitchen item stunned them.
Unscrupulous businessmen have increased the price of onion in the domestic market as the neighbouring country India extended the ban on onion until March - three weeks before the current phase of restriction expired on December 31. Immediately after the news, the prices of local and imported onion almost doubled on Saturday.
There is a shortage of 20 percent of the total demand of onion in the market. Around 90 percent of the onion imports come mainly from India. Recently, India has increased their export price up to $800. A section of dishonest traders adopt the strategy to raise the price of any essential when they get any scope.
Banning onion export by India is not new. We have noticed such a trend among traders for the last few years and they start making hefty profits.
Traders have not yet started importing onions from India at higher prices. But, they increased the prices in the local markets after hearing the news of extension of ban on onion.
Again, even if the price falls at some points, they do not want to cut the price arguing that the product has not yet arrived. It is very sad to extend the ban by India without prior notice.
Bangladesh should search for an alternative market for onion along with continuing import from India. In an effort to keep the supply and price of onion normal in the country, state-owned Trading Corporation of Bangladesh (TCB) will have to start selling the onion at a fair price immediately.
This year alone, more than 34 lakh tonnes of onion have been produced in the country. Meanwhile, the demand for onion in the country is 26 to 28 lakh tonnes per year.
Dishonest traders adopt the
strategy to raise
the price of any
essential when they get any scope
However, due to lack of proper storage system or adverse environment, 30 to 35 per cent of locally produced onion goes to waste. The price of onion should not go high.
At the policy level, the government should put emphasis on the interests of country’s local farmers. The government will have to take up all sorts of strategies to keep the price of onion at a logical level. Dishonest traders must be given exemplary punishment. Measures should also be taken so that the supply chain of onion becomes normal soon.
To keep the market of any consumer item stable, there is no alternative to increasing local production. Although the country produces an excess amount of onions, one-third of it goes to waste, leading to onion shortage, abnormal prices and the need for import from neighbouring India; and sometimes India bans export or raise import duty, so the government must emphasize onion preservation to tackle these challenges.
If onion preservation system develops in the country, Bangladesh can address the instability and crisis of onions in the country. The government must take adequate steps to check the price hike of onion through monitoring the market.
In this regard, the hoarders, who are stocking onion, must be identified, arrested and brought to justice. We believe that the current volatile situation in the onion market will no longer exist and it will soon become stable.
Therefore, the Directorate of National Consumer Rights Protection (DNCRP) must continue conducting countrywide drive to keep the price of onion under control as well as to keep its supply chain intact following uptrend in price of such essential item after India imposed a ban on onion export.
Apart from DNCRO, the commerce and home ministries concerned ministries also have to continue to monitor and drive until the price of onion in the kitchen market comes under control.
