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Onion prices in the wholesale and retail markets are on a declining trend as 15 thousand tonnes of onions came to the country from India through six land ports between June 5 and June 7.
The majority of these imported onions arrived through Hili land port in Dinajpur, Sonamsjid land port in Chapainawabganj, and Bhomra land port in Satkhira. Additionally, shipments of onions have also been received through Benapole land port in Jashore, Burimari land port in Lalmonihat, and Bibir Bazar land port in Cumilla. Furthermore, a consignment of 40 kg of onions was imported through Dhaka airport.
The Ministry of Agriculture allowed resumption of onion imports from India on June 5 following a sudden surge in prices, although the government had halted all kinds of onion imports since March 16 to safeguard domestic production.
Spot visits to wholesale and retail markets in Chattogram found a significant decrease in onion prices compared to a week ago, with sellers attributing it to the import of Indian onions.
At Khatunganj, the largest consumer goods wholesale market in the country, Indian onions are being sold at Tk 40 to Tk 45 per kg. On the other hand, the local “desi” onions are priced between Tk 50 and Tk 60. However, the demand for desi onions has significantly decreased after the arrival of Indian onions. Wholesalers like Uttam Kumar Shah mentioned that they are gradually phasing out local onions from the market. They are stocking desi onions due to their longer shelf life but are only selling to interested buyers.
According to data obtained from the National Board of Revenue (NBR), a total of 14,823.18 tonnes of onions have been imported through various ports since the resumption of imports until June 7. The import cost for these onions amounted to Tk 51.70 crore, with the average cost per kilogram, including duty, being Tk 38.35. One importer brought in a shipment of 40 kg onions through Dhaka airport, which cost Tk 178 per kg.
Idris Ali, the general secretary of Khatunganj’s Hamid Ullah Mia Bazar Traders Association, noted that the wholesale price has dropped to Tk 40 per kg following the import of onions from India. He mentioned, “Although buyers are coming, the demand is relatively lower. Indian onions are being sold at Tk 40 per kg, while domestic onions are priced at Tk 50-55. If the supply continues to increase, onion prices may further decrease to Tk 30 per kg.”
The onion market has experienced considerable instability this year, with prices fluctuating constantly. Retailers are cautious due to slightly lower prices of imported Indian onions in the wholesale market, fearing potential losses. As a result, they are buying onions in smaller quantities. The arrival of Indian onions has also affected the prices of desi onions from Faridpur and Pabna, leading to a decline. Consequently, the retail prices have slightly decreased compared to previous levels.
Syed Sagir Ahmad, the general secretary of Khatunganj Trade and Industries Association, stated that storing onions for extended periods is not profitable due to their perishable nature. He mentioned, “In Khatunganj, all onion sellers are commission agents, and there are no major importers. But there are middlemen who play a role in increasing the prices.”
