Onion market to cool down soon with huge import: Ministry

The overheated onion market is expected to cool down within the next couple of days when big consignments of onions from a number of countries will enter the country, says the Commerce Ministry here on Monday. 

The Commerce Ministry said some big importers are importing onions in huge consignments from Egypt and Turkey at the request of the Commerce Ministry.

Bangladesh has also started importing onions from neighbouring Myanmar as an alternative source to keep its price stable in the domestic market with adequate supply amid India's export ban on the essential kitchen item.

Bangladesh is importing onions from Myanmar in two ways – by opening LC and border trade, said the Commerce Ministry urging businesspeople to increase their import volumes and do business maintaining business ethics.

Meanwhile, new onions are expected to hit the domestic market from the third week of November.

Analysing all the aspects, the Commerce Ministry said, it appears that there is adequate supply of onions in the market. Imported onions are arriving every day.

"Consumers don't need to get panicked. Onion price will soon become normal as big consignments will arrive within a couple of days," it said. 

The Commerce Ministry said they have taken a number of steps to keep onion price and its supply normal as big consignments are coming from alternative sources.

Apart from Myanmar, Bangladesh has started importing onions from Egypt and Turkey through opening LCs.

The Commerce Ministry said the prices of onions increased recently in Myanmar's market as well having its impact on Bangladesh market.

On September 29, the Indian government banned the export of onions with immediate effect till further orders for what it says improving domestic availability.

On September 13, the minimum export price of US$ 850 per metric tonne was imposed on onion export.

The ban on onion export is expected to improve domestic availability and cool prices, said the Indian government. 

Bangladesh used to import onions from India mainly due to low price and smooth transportation system.

But onion production in India was hampered due to floods in Indian State Maharashtra and other places prompting India to impose ban on onion export.  

The Commerce Ministry here had meetings with onion importers and businesspeople several times and they are in constant touch with importers.

Earlier, it was announced that stern action will be taken if any businessperson tries to build stocks of onion illegally, increase price artificially and hamper the normal supply flow.