The onion market has become unstable due to stocking in Jashore. Onions are being sold at Tk75 for the last two days.
The price has increased by Tk30 per kg. However, a month ago the price was Tk30, on Eid-ul-Azha.
Foreign Trade Branch of the Indian Ministry of Commerce declared that from Friday the onion could not be exported for less than $850 per metric ton.
Alamgir Hossain, the proprietor of the Noakhali Agency in the Jashore big bazaar, said the situation was created as an increase of the onion exports.
We bring onions from Kushtia and Jhenaidah to Shailkupa and sell these in wholesale price. I sell it at a minor profit. But the retail market is selling in higher price.
According to wholesale market sources, there are 13 onion wholesale traders in Alupatti and Kalibari in the bazar.
About 150 sacks of onion are sold every day from these premises. Retailers buy this onion. Onions come from Jhenaidah, Faridpur and Kushtia districts. Indian onions come through the port of Benapole and Bhomra. Besides, some traders also collect onions from other places.
Abu Hasan, the importer of the Bhomra land port in Satkhira, said he has imported onions from India for the last month $250 per MT. At the minimum price fixed by India, the price of Indian onion in the retail market can go up to Tk100 per kg.
Bangladeshi importers said that last week, they imported Indian onions from $ 250 to $ 300 per ton. Now India has fixed the minimum export price, which will be almost three times.
However, many onion importers said that the onions come from different countries besides India. With that, the deficit will not be too much in combination with the country's production.
As a result, the price may increase slightly in the retail market but the situation is not expected to be so severe. Importers have already started importing onions from different countries, including Turkey, Egypt, and Pakistan. As a result, India's decision does not have any effect as the market becomes deregulated.
However, onion production in Bangladesh is estimated to be around 17-18 lakh metric tons annually. As the demand is not sufficient, the imports have to be 8 to 9 lakh metric tons.
Most of the times, businessmen import onion from India because of the short distance.