After a period of stability, the onion and potato market has once again become volatile. Prices for these essential commodities have surged by Tk 10-40 per kg within a span of two to three days in both retail and wholesale markets even after the government imposed price caps.
According to the state-run Trading Corporation of Bangladesh (TCB), the government had set the potato prices at Tk 35-36 per kg at retail level. The price has gone up by Tk 10 per kg in just two days, hitting Tk 55-60 per kg in the kitchen markets on Monday.
Simultaneously, onion prices have surged by Tk 20-40 in the retail market. On Monday, locally produced onions were sold at Tk 115-130 per kg, compared to Tk 95-100 per kg on Saturday.
While imported onions, despite government regulation at Tk 64-65 per kg, were sold at Tk 110-120 per kg, up from Tk 70-80 per kg at retail.
Karwan Bazar data reveals that local onions at the wholesale level were sold at Tk 125-128 per kg on Monday, a significant increase from Tk 80-85 per kg three days ago. Imported onions at the wholesale level had risen to Tk 105-110 per kg, up from Tk 65-67 per kg.
Meanwhile, potatoes were sold at Tk 48-50 per kg in wholesale market on Monday, compared to Tk 40-42 per kg three days ago.
Talking to The Business Post a Karwan Bazar wholesale trader Md Khalil said, “The wholesale market is currently experiencing a shortage in the supply of the two essential items, leading to a daily increase in prices over the past week. Hoarders are capitalising on the crisis. Despite purchasing the products at a lower price, they are now selling them at a higher price.”
“The escalation became more pronounced after India set the export price of onions at $800 per tonne. Sellers, who operate on commission for large wholesalers, find themselves bound by the prices set by the wholesalers," he added.
The former president of Bangladesh Cold Storage Association (BCSA) Mosharaf Hossain told The Business Post that facing continual losses in the domestic market, farmers and traders opted to reduce potato production last season. Data indicates a 15-20 per cent decrease in potato production compared to the previous year, leading to a reduction in cold storage capacity.
According to the Department of Agricultural Extension (DAE), in the fiscal year 2022-23, 1.12 crore tonnes of potatoes were produced in the country which was 1.15 crore tonnes in the fiscal year 2021-22.
Accordingly, the production increased by 1.33 lakh tonnes in a year. According to the government, the demand for potatoes in the country is slightly more than 95 lakhs. So there is a surplus of about 16 lakh tonnes of potatoes against the demand in the country.
However, cold storage owners claimed that the official data on potato production is not correct.
Govt gives permission to import potatoes
The government has given permission to import potatoes in a bid to keep the price of such essential items under control.
Talking about the permission given by the Ministry of Commerce, the public relations officer of the ministry M Haider Ali in a statement said that the government has decided to import potatoes considering the current market situation as well as to increase the supply of potatoes in the market and also to keep the market price of potatoes stable.
Interested importers and potato traders have been requested to apply before the Ministry of Commerce in this regard.
Earlier on September 14, the Ministry of Commerce had set the price of potatoes at Tk 36 per KG at the retail level.
But, despite such steps, potatoes were not being sold at the kitchen markets at the government fixed price.
Under such circumstances, the ministry took the decision on Monday.
