Onion price hike heats up Khatunganj market

The onion market in Chattogram’s Chaktai-Khatunganj, one of the largest wholesale commodity markets in the country, has become volatile as the kitchen item’s price has increased by Tk 7-8 per kg in a week. Onion was sold in Khatunganj on Saturday at Tk 42-50 per kg. The prices of all categories of onions sold in the market have increased.

“In Hamidullah market, the busiest onion market in Khatunganj, local onions sold at Tk 48-50 per kg, Indian onions at Tk 46-48, and Myanmar onions at Tk 42-44 on Saturday,” said Mohammad Idris, secretary of the Khatunganj Traders’ Welfare Association. “Onion prices are increasing every hour. On Saturday, prices rose by more than Tk 3-5 per kg between morning and evening.”

The onion market in Chattogram became volatile after the increase in Indian onion prices at Bhomra and Sonamasjid land ports last week, and the situation continued this week. 

Earlier last month, Indian onions sold at Tk 32-35 per kg in Khatunganj.

The onion market in Chattogram is heavily dependent on imports from India, Myanmar, and other countries.

In the last two years, when imports from India and Myanmar decreased, onions were brought in from different countries of the world by ship with the government’s special permission.

Onions from Myanmar, also known as Burmese onions, had been selling at Tk 30-32 per kg for the past few weeks. But the supply of these onions in Chattogram was suspended last week when Indian onion prices started rising.

“Supply resumed after a week. Three trucks of Myanmar onions arrived in Khatunganj on Friday and sold at Tk 40-42 per kg,” said Idris.

He said supply had remained normal despite the price hike. He is not sure why import prices of onions in Bhomra, Sonamasjid, and Teknaf have increased.

Every year, at the end of the season in September-October, Indian imports may fall or stop. In the last two years, imports stopped, which caused prices to rise three to four times. 

After imports from India stopped in September 2019, onion prices hit a record high of Tk 200 per kg.

Even though Indian onion imports stopped at the same time in 2020, the market was stable due to earlier imports from other countries.

Although 100 trucks of onions enter the Chattogram market from different land ports of the country every day, it has now come down to 60-70, traders said.

Solaiman Badsha, a commission agent and wholesaler in Khatunganj, said sales had fallen slightly due to price hikes.

“We have reduced deliveries from importers at land ports due to declining sales, but anyone can buy onions of any quantity from there at increased prices,” he said.

The onion market becomes volatile at this time of the year as importers control prices, he added.