Onions dearer again, hike in edible oil price too

Onions are getting costlier although the price fell a bit recently. Now, the price of onion has increased by Tk5 per kilogram. Besides, the loose soybean oil has also witnessed instability in the selling price.

After India has stopped onion exports since September 14, there is a turmoil in the local onion market. The instability is yet to be fixed.

Visiting different retail and wholesale markets in the capital, it was found majority of the sellers selling locally-grown onion for Tk80-85 per kg. However, some sellers were seen selling it for Tk90 per kg.

But now, onions are not available below Tk90 per kg.

Similarly, the price of imported onions increased by Tk5 to Tk70-80 a kg. Imported onions sold for Tk70-75 a kg earlier.

Habibur Rahman, a shopkeeper in Rampura, said, "I bought onions directly from Pabna and sold them for Tk75 per kg. But now, it is being sold at Tk85-90 in the Pabna warehouses. So, I cannot sell onion at a reduced price."

Ashraful, a wholesaler in Karwan Bazar, said the price of onions outside Dhaka has gone up again. Therefore, it is increasing in Dhaka too.

Meanwhile, prices of unpackaged soybean and palm oil are rising amid an extreme volatility in the international market. Although the price witnessed a fall in the last one week, it is soaring in the local market of Bangladesh.

The price of palm oil and soybean has increased by more than Tk5 per litre.

Retailers said loose soybean oil sold for Tk92-93 per litre, but it sold for Tk87-88 a week ago. Besides, palm oil (unpackaged) sold for Tk80-84 per litre, up from Tk75-80 seven days ago.

Further, super palm oil sold for Tk84-90 per litre, up from Tk80-84 a week ago.

The daily market analysis of the Trading Corporation of Bangladesh (TCB) also mentioned the rising price of edible oil.

Traders also said China is purchasing a huge quantity of oil from the world market. Besides, India is also buying more than its needs. Therefore, the oil price in the world market is skyrocketing now.

According to the commerce ministry, crude soybean oil sold for $790 per tonne, down from $846 a week before. However, the price fall in the international market hardly impacts the local market.

When asked, Mohammad Ali, an oil wholesaler in Moulvibazar, told The Business Standard, "Oil refining companies are not buying palm oil because of higher prices. Thus, there is a shortage in palm oil in the domestic market."

Companies are also releasing soybean oil in a less quantity for the rising prices, Ali added.

He blamed China and India for purchasing excessive oil which has hiked the prices in the international market.

Soybean oil is selling for around Tk90 and palm oil for Tk83 per litre at wholesale shops of Moulvibazar.