Prices of ginger, garlic and onion have dropped by Tk 4 to Tk 15 per kilogram over the past week at Khatunganj in Chattogram, one of Bangladesh's largest wholesale markets, according to information gathered from traders on Thursday. They noted that this price reduction is expected to have a positive impact on the retail market.
Traders told The Business Post that at the beginning of May this year, onions were being sold at a wholesale price of less than Tk 70 per kilogram. At that time, India, one of Bangladesh’s largest onion exporters, set a minimum export price of $550 per tonne and imposed an additional 40 per cent duty on onion exports.
As a result, although onions continued to be imported from India, prices in the local market soared past Tk 90 per kilogram overnight.
In the following weeks, onion prices surged further, reaching over Tk 115 per kilogram. Currently, onions are being sold at Tk 120 per kg in retail markets in Dhaka.
Due to the high price of Indian onions, traders began importing from other countries, such as Pakistan, China and Myanmar, starting in early July.
However, last month, India lifted the minimum export price requirement and reduced the additional export duty from 40 per cent to 20 per cent. As a result, Bangladeshi traders resumed importing onions from India, leading to price reductions at Khatunganj.
During a visit to the wholesale market at Khatunganj, it was observed that local onions, which were selling for Tk 95 per kilogram a week ago, are now priced at Tk 90 per kilogram. Similarly, Indian onions, previously sold at Tk 92 per kilogram, are now being sold at Tk 85 per kilogram.
Commenting on the price reduction, General Secretary of the Chaktai-Khatunganj Artaddar General Traders Welfare Association, Md Mohiuddin, explained that price fluctuations are driven by supply and demand. He added that any reduction in import costs directly impacts the market.
"Onions are now being imported in significant quantities, which is contributing to the decrease in prices. The same trend is being observed with ginger and garlic," he said.
Garlic, which was selling for Tk 185 to Tk 190 per kilogram in the wholesale market last week, is now priced at Tk 175 per kilogram. Similarly, the price of ginger has dropped by Tk 15 per kilogram, with wholesale prices falling from Tk 255 per kilogram last week to Tk 240 per kilogram at Khatunganj.
