Unscrupulous businessmen have increased the price of onion in the domestic market immediately after the announcement of raising duty by India. A section of dishonest traders adopt the strategy to raise the price of any essential when they get any scope.
The price of onion crossed Tk100 per Kg in the retail market of Dhaka after India imposed a 40 percent duty on onion export. As a result, the price of onion has started increasing in the local markets sharply.
The prices of the local varieties of onion rose by Tk 18 to 20 per kg while imported hybrid onion prices also went up by Tk 15 to 18 per kg across the country. Traders have not yet started importing onions from India at higher prices. But they increased the prices in the local markets after hearing the news of imposing duty.
Bangladesh should search for an alternative market for onion along with continuing import from India. In an effort to keep the supply and price of onion normal in the country, state-owned Trading Corporation of Bangladesh (TCB) will have to start selling onion at a fair price immediately.
The government must take
adequate steps to check
the price hike of onion
This year alone, more than 34 lakh tonnes of onion have been produced in the country. Meanwhile, the demand for onion in the country is 26 to 28 lakh tonnes per year. However, due to lack of proper storage system or adverse environment, 30 to 35 per cent of locally produced onion goes to waste.
The government will have to take necessary steps to keep the price of onion stable. Immediate measures should also be taken so that the supply chain of onion will become normal soon.
Although the country produces an excess amount of onions, one-third of it goes to waste, leading to onion shortage, abnormal prices and the need for import from neighbouring India; and sometimes India bans export or raise import duty, so the government must emphasize onion preservation to tackle these challenges.
The government must take adequate steps to check the price hike of onion through monitoring the market. In this regard, the hoarders, who are stocking onion, must be identified, arrested and brought to justice. We hope that the current volatile situation in the onion market will no longer exist and it will soon become stable.