Imported onion price doubles in a month

Highlights: 

• Imported onion prices went up to Tk60-75 from Tk40-50 per kg a month ago
• Domestic onion prices increased to Tk80-85 from Tk60-65 per kg
• Imported garlic prices increased to Tk220-240 from Tk200-220 per kg

The price of imported onions has soared by more than 50% to Tk60-75 a kilogramme in a month, according to Trading Corporation of Bangladesh (TCB) data.

A month ago, imported onions were sold for Tk40-50 per kg. The price has been on the rise for several weeks now but it soared after India on 19 August imposed a 40% export duty on onions to increase the supply of onions in its domestic market and control price hikes.

Due to the increase in the price of imported onions, the price of local variety onions has also gone up in the market. According to the TCB, domestic onion prices have increased by 32% in a month from Tk60-65 per kg to Tk80-85. A year ago, the price hovered around Tk40-55 per kg.

Abdul Majed, a wholesale onion trader of Shyambazar in Old Dhaka, told The Business Standard (TBS) on Friday, "Imported onions are selling for Tk57-58 per kg, depending on the quality and local onion for Tk70-72. Local garlic is selling for Tk200-210 per kg while imported Chinese garlic is selling for Tk195-210 per kg."

Visiting several kitchen markets including Karwan Bazar and Moghbazar in the capital, local onions were seen selling for Tk80-85 a kg. Some street shops in the Moghbazar area were seen selling local onions for Tk100 a kg.

Meanwhile, the government has decided to allow the import of onions from China, Egypt, Pakistan, Qatar, Turkey, Myanmar, Thailand, the Netherlands and the United Arab Emirates to control unbridled prices.

Garlic prices have also seen a slight rise in a month and a drastic increase in a year, according to TCB data.

The price of imported garlic has increased by 9.52% in one month — presently being sold at Tk220-240 per kg, increasing from Tk200-220. Local garlic is selling for Tk220-240 a kg. In contrast, a year ago, the price of imported garlic was around Tk110-130 per kg and the price of local garlic was Tk60-80 per kg.

A supply shortage has emerged in the country's spice market as the dollar crunch and regulatory duty disrupt imports. 

Prices of most spice products have increased by 50% to 140% in a year. Cumin price rose by 140% to Tk1,100-1,180 per kg. 

A year ago, the price of imported ginger was Tk80-120 which has now increased by 125% to Tk200-250 a kg.

Prices of vegetables have also increased by Tk5-10 per kg as the supply of products in Dhaka markets is low due to the monsoon, traders said. Bitter gourd is selling at Tk60-80 a kg, okra at Tk40-50, yardlong bean at Tk60-70, and sponge gourd at Tk60 per kg.

The price of potatoes has increased by 90% in a year, according to TCB data. A year ago, the price of potato was Tk24-30 per kg, now it is selling at Tk36-42.

Md Rahat, a private employee who came to the Moghbazar kitchen market, said, "Prices of some products are increasing every week. Last week I bought local onions at Tk80 per kg, but today [Friday] I bought it at Tk90."

"I went to buy broiler chicken but it was priced at Tk170 per kg. So, I decided to skip it for today. I bought a pangas fish for Tk160 a kg. Four pieces of eggs cost Tk55, so I decided to skip that too. I am struggling to run a family of three members as every essential item such as edible oil, rice, potatoes, and pulses has become expensive," Rahat said, adding that the government should now introduce a ration system for low-income people.