Onion supplies surge, retail prices plunge by Tk 100 per kg

Prices of onion have dipped by about Tk 100 per kg in the retail markets as the supply of home-grown varieties has surged sharply in a week.

Though the price plunge brought a big relief to the consumers, wholesalers and retailers were worried as they suffered a slump in sales of the imported varieties.

At a Borobagh grocery store in Mirpur, new produces of the local variety were priced at Tk 100 a kg on Friday, which was between Tk 200 and 220 a kg last week.

The kitchen staple imported from Myanmar was being sold at Tk 130 per kg, which was Tk 200 per kg a week ago.

To keep the prices in check, the government started importing onion by air and sea and selling those through its trading arm, the Trading Corporation of Bangladesh, at Tk 45 per kg throughout the country. The initiative put a lid on the skyrocketing prices.

On Friday, onions imported from China, Egypt and Turkey also saw a price drop and were sold at Tk 70 per kg.

"People stopped buying onion imported from China and Turkey after the arrival of home-grown onion in the market,” a retailer who used only one name, Russell, told bdnews24.com.

He failed to sell the onion imported from Myanmar even after cutting the prices by Tk 20 to Tk 30 a kg.

Shamim Ahmed, a buyer who bought local onions from the store, said, "Now the prices are within the reach.”

Mohammed Selim Mia of Chandpur Traders at Shah Ali Market in Mirpur said the prices of all types of onions were on the decline as the supply of new onions increased. However, sales were as poor as before, he said.

Trader Saiful Islam bought 40 sacks of onions from Faridpur last Sunday. He was still looking to sell off remaining seven sacks of onions at a Mirpur market.

The price of new onions dropped by Tk 20 to Tk 80 kg in two days.