To offset the government’s strong surveillance to bring down prices of onions to an affordable slab, importers and suppliers have adopted newer tactics to control the prices of onions.
In the wake of strict surveillance by government agencies, the unscrupulous exporters and onion traders resort to the new tactic under which the exporters from neighboring countries are handing over the onions to the Bangladeshi middlemen known as suppliers in the ports of the country. They manipulate custom documents with mutual understanding, so that the authorities cannot fix the prices of onions based on the import prices.
Besides this, businessmen have taken up an array of strategies to manipulate onions prices, according to government officials and trade body leaders in Chattogram, the main port city of the country.
After India imposed an $850 per tonne minimum export price on onion on Sept 13 to curb export, in Bangladesh the prices of this essential vegetable hiked almost double.
Taking the chance, some of the unscrupulous traders for the greed of making ultra-profit increased the price of onions overnight, causing a kind of instability at the markets.
Due to the strict surveillance of the government and the importation of onions from Myanmar, Egypt and Turkey, it became possible to bring down a bit the onion prices. But as the weeks go by, the prices of onions go up again.
For the last two days, the new tactic of unscrupulous businessmen has come into the notice of the officials who go to markets to monitor the onions prices.
“The officials have not found any importers in Chattogram to find out the import prices of the onions,” said Tawhidul Islam, executive magistrate of Chattogram district administration. “We got the list of eight importers from the Commerce Ministry and the Bangladesh Bank. On Thursday we checked the documents of three importers of the list, but got nothing about any recent onions imports.”
At the same time, importers did not attend a meeting convened by the Chittagong Deputy Commissioner on Thursday on the prices of onions. At the meeting, onion traders of Chattogram reported that importers have been transferring their imported onions to middlemen and suppliers at the ports and other border points.
Nurul Absar, Secretary of Chaktai Businessmen Association, told The Bangladesh Post, “Though imports are continuing, no importers bring their onions to the wholesale markets. We are no longer able to collect onions directly from importers. Onions are being procured from specialized suppliers.”
“After the administration's surveillance started earlier this month, special suppliers were seen waiting at the ports. As soon as onion shipments arrive, they (suppliers) buy it in a three-way negotiation agreement with the importers and exporters. Taking the chance of increased onions prices, these suppliers have become visible, who identify themselves as representatives of importers at the markets,” he added.
On Thursday, onions from Myanmar were sold at Khatunganj wholesale market at Tk. 65 to 70 Tk per kg. Indian onions were sold at Tk 85 to Tk 90 per kg.
“But there is no reason to sell Myanmar onions at more than Tk 45-50 per kg and Indian onions at Tk 65-70 per kg” said executive magistrate Tawhidul Islam, adding that “We asked them (whole sellers) to display the names of the importers and prices at the markets.”
Omar Faruque, a commission agent and whole seller, told this reporter, “We collect onions from suppliers with mutually fixed price, at the moment no importers are visible at the markets. Now suppliers are not interested to sell onions in big markets like Chakatai-Khatunganj where the administration is monitoring the price constantly.”
“The reality is that, suppliers are trying to find elsewhere without vigilance to sell onions,” he said.
Prices of onions have increased in India after floods hit production in Maharashtra and Karnataka recently. The importers bring onion mostly from India as the transport cost is low due to the close proximity. But onions from Myanmar are being transported by wooden boats as bulk cargoes, and some quantity of onions are going to be rotten.
Magistrate Towhidul Islam informed, “Traders in Chakatai - Khatunganj often display rotten onions at market entrances so that it can be shown as an excuse to sell good onions at an exorbitant price.”
Bangladesh produces 1.7 million to 1.9 million tonnes onion annually and imports 700,000 tonnes to 1.1 million tonnes to meet the domestic demand.
Pabna, a northern district, is the main hub of onions and this essential commodity business in the country. Most Influential suppliers of this business are based in this district. The suppliers collect onions from farmers and as well as importers.
When contacted over phone, Omar Ali Fakir, a leading onion supplier of the country based in Bera Bazar of Pabna, told this reporter, “In last one week we collected Indian onions from importers and other sources in the ports and other boarder points at Tk 70-80 per KG.”
“There are so many suppliers in the ports to collect onions from importers and exporters. Now it’s difficult to identify who are exporters or who Importers are. In fact, now they have set a secret strategy so that prices can be controlled,” he added.
