The supply of local onions in the country’s market is increasing, which in turn is causing the kitchen essential’s price to fall steadily. Sellers say onion prices have decreased by more than Tk 15 per kg in the last two days.
Onions are now being sold at Tk 10 less compared to the wholesale and retail rates set by the government. As a result, even if the import of onions from India is stopped, there will not be a crisis in the country’s market, say traders.
Local onion was among the 29 products whose prices were recently fixed at the producer, wholesale and retail levels by the Directorate of Agriculture Marketing (DAM).
The directorate fixed the price of onions at Tk 44 per kg at producer or farmer level, Tk 55 per kg at wholesale level, and Tk 70 per kg at retail level.
At the wholesale level, onions were sold at Tk 45 – Tk 56 per kg in the capital's market on Saturday, which was Tk 60 – Tk 62 per kg two days ago. Besides, onions are being sold at retail level at Tk 60 – Tk 65 per kg, which was Tk 70 – Tk 80 per kg.
It is known from various regions including Faridpur and Pabna that onion is being sold at Tk 36 –Tk 45 per kg at farmer level.
Khalilur Rahman, owner of Minhaj Banijjaloy in Karwan Bazar and onion wholesaler said, "Even if onions are not imported from various countries including India, the price will not increase, because the supply of local onion in the country is increasing day by day.
"However, there is no possibility of the onion price going down more than this."
Two days ago, we sold onions at Tk 60 – Tk 62 per kg, which has now come down to Tk45 per kg. A day ago it was Tk 47 – Tk 50 per kg, he added.
However, despite the reduction in prices, onions are still being sold at 73 per cent higher prices compared to last year. Trading Corporation of Bangladesh (TCB) data said on this day last year [March 23, 2023], local onions were being sold at Tk 35 – Tk 40 per kg.
It should be noted that India’s ban on onion exports has been extended indefinitely. India is the world's largest onion exporter. The ban, which was imposed last December, was valid until March 31.
According to the Department of Agriculture Extension (DAE), the annual demand for onions in Bangladesh is 28 lakh tonnes. The annual production is around 36 lakh tonnes, more than 60 per cent of which is produced in March-April season.
