Signs of onion prices falling as imported products arrive in Bangladesh

Onions prices have decreased by Tk 30 a kg in the wholesale market as products from India enter Bangladesh

Onion prices have started decreasing in Bangladesh with the arrival of first consignments from India after the government allowed imports to cool down skyrocketing prices.

In the wholesale markets, the prices have fell by Tk 30 a kg.

The Ministry of Agriculture approved 210 import permits to bring 280,800 tonnes of onions on the first day on Monday.

Over the past two years, annual onion production in the country has increased by 900,000 tonnes to 3.4 million tonnes, according to the agriculture ministry.

The annual demand for onions in Bangladesh is approximately 2.8 to 3 million tonnes.

Although the domestic production was sufficient to meet the demand, the prices started to rise, allegedly due to market manipulation by a quarter of dishonest businesses.

After Eid-ul-Fitr, the price of onions started to rise steadily. Within a month, it went up from Tk 30 to Tk 80, and in the past few days, it has been selling at Tk 100.

The agriculture ministry, in an effort to protect farmers' interests, initially refrained from allowing onion imports. However, after evaluating the current situation, they finally agreed to allow imports on Sunday, resulting in an impact on the wholesale market.

Abdul Majed, an onion trader in Old Dhaka’s Shyambazar, told http://bdnews24.com that the price of onions dropped by Tk 30 to Tk 60 per kilogram on Monday.

He would assess the situation and decide whether to import onions after a few days.

In Chattogram’s Khatunganj, one of the major wholesale markets in the country, onion prices have started to decrease. Onions were being sold at Tk 60 to Tk 65 per kilogram in Khatunganj.

The price ranged from Tk 85 to Tk 88 per kilogram on Saturday, and it rose to Tk 90 by Sunday evening.

However, the impact of this decline was yet to be seen in the retail market as the retailers were still selling the onions they purchased at high cost.

ONION TRUCKS REACH PORTS

Three trucks hauling a total of 66 tonnes of Indian onions arrived at Hili Land Port in Dinajpur on Monday evening.

According to Harun Ur Rashid, president of the Hili Land Port Importer-Exporter Group, traders purchased the onions at prices ranging from $150 to $200 per tonne, resulting in a decrease in the onion price by Tk 30 to Tk 35 per kilogram.

Since Monday afternoon, Sonamasjid Land Port in Chapainawabganj has been receiving onion shipments, as confirmed by Panama Sonamasjid Port Link Ltd, the port operator.

By 6pm, over 1,062 tonnes of onions had been delivered in 56 trucks, said Mainul Islam, the company's manager.

"I have heard that several onion trucks are currently awaiting entry at India's Mahdipur port to cross into Bangladesh, and more trucks will arrive in Bangladesh tomorrow as well."

Eight onion trucks are expected to arrive at Bhomra Land Port in Satkhira on Monday afternoon, according to Shanto Hawlader, the spokesman of the local customs station.

Maksud Khan, the general secretary of the Bhomra Customs Clearing & Forwarding Agent's Association, said that onions are being imported at a price of $220-250 per tonne.

According to Hemant Kumar Sarkar, an officer at the plant contamination centre of the port, 75 tonnes of onions arrived in three trucks at Jashore's Benapole Land Port.

The C&F agent Royal Enterprise has cleared the onion shipment for the Dhaka-based importer Zarif International.

Onion was imported into Bangladesh at a cost of $200 per ton, said Tanvir Ahmed, the deputy commissioner of Benapole customs house.