Onion makes pockets bleed

Shawdesh desk;

Onion prices have skyrocketed in Chattogram and elsewhere across the country following the extension of export curbs by India on the essential cooking item, putting further strains on already struggling people.

Onion was selling for Tk220-240 per kg at retail market while for Tk190-Tk220 at wholesale market on Saturday with sellers saying the price may hit all-time high this year.

The price was Tk100-115 and Tk85-90 at retail market and wholesale markets respectively even on Thursday.

The onion price reached a record high of Tk260 per kg after India slapped export ban in September 2019.

India banned the export of onion since 8 December. The decision was made to regulate onion price and ensure domestic supply in the country.

The ban will remain in place till 31 March next, according to a notification issued by the Indian Ministry of Commerce and Industry on Thursday.

It came within 40 days after India bracketed the lowest export price for the item at $800 per tonne on a free-on-board basis, starting from 29 October which will remain effective till 31 December.

The revenue department of Finance Ministry of the country also imposed a 40% duty on onion export on 20 August, causing a hike in its price then.

Unscrupulous traders started hiking the price of onion soon after the news of India’s extension of export ban spread around.

Onion was also seen vanishing from shops at Khatunganj-Chaktai, one of the largest wholesale markets in the country.

While visiting Khatunganj and Chaktai on Saturday, it was seen that onion vanished from wholesale shops and it was not kept on display at most of the stores.

Asked about the matter, the sellers said the supply is very poor and the previous stock has been sold out.

Some 20-30 trucks usually arrive at the market with onion every day but it came down to some five trucks over the last two days, claimed the wholesalers.

Chaktai’s Messer’s Ali Ahmed Sawdagor and Son’s Proprietor Md Alamgir told the Daily Sun that the sudden export restrictions, unavailability of local variety and hike in transportation cost have turned the onion market volatile.

The good quality variety of Nasik sold at Tk90 per kg on Thursday and the price has climbed to Tk200 as of Saturday afternoon with an increasing trend, he said.

Besides, the China variety of onion was selling at Tk150 a kg against Thursday’s Tk50, said Alamgir.

The local onion, which is likely to arrive in the market within seven days and will be available for some three months, cannot meet the huge local demand, observed the trader.

He suggested decreasing dependency on India and instead focusing on local production to get rid of such crisis in the coming days.

Khatunganj’s Messer’s Bengal Traders representative Md Tahsin said they sold onion at Tk95-96 on Thursday.

But, the price soared to Tk170 on Friday and stood at Tk185 on Saturday due to the supply crunch.

Asked how the price increased substantially before the arrival of the new consignment of onion, the trader claimed that after the shortage in supply, traders collected onion from local market to meet the demand of regular buyers.

Due to the huge difference between the demand and supply, the price has seen a rise in Khatunganj and Chaktai, Tahsin claimed.

He said the local onion, which grows in plenty in Meherpur, Pabna, Faridpur and Kushtia districts, is not largely preferred in Chattogram due to its high price.

The seller laid emphasis on searching alternative markets beyond India and easing the process of import from other sources like Egypt, China, Myanmar, Pakistan and Turkey.

He also blamed the ongoing blockade and hartal for the significant hike in transportation cost, which led to increase in the onion price, saying the buyers ultimately bear the brunt.

However, Tahsin could not predict how high the onion price will reach in the coming days as it will take some 10-30 days to get the imported onion from other countries.

He said the onion price may smash the previous record of Tk260 per kg.

Md Yasin, owner of Yasin Store in the city’s Kusumbagh Residential Area, said they sold onion at Tk115 per kg on Thursday while at Tk160 on Friday.

“I bought onion at Tk190 per kg at the wholesale market in Khatunganj in the afternoon which reached Tk200 in the evening,” he said, adding that they were selling the item at Tk200-210 a kg.

Rubel Store at the city’s Kazir Dewry was selling onion at Tk220 in the afternoon.

However, the price ranginess from Tk220 to Tk240 at some other places of the city, said sources.

Md Idris, general secretary of Khatunganj Hamidullah Mia Market Bebsayi Kalyan Samity, fears that the price might set a new record this time as there is no onion at wholesale shops and warehouses at Khatunganj and Chaktai for lack of supply.

Asked about the immediate remedy, he said the government should come forward allowing importers to open letter of credit (LC) at a little margin for speedy import of onion from other sources.

The government should also ensure that import is not allowed from India for a stipulated time to encourage importers to bring in from other sources during the period, Idris said.

SM Nazer Hossain, vice-president of the Consumers Association of Bangladesh (CAB), alleged that some unscrupulous traders are responsible for the market volatility and the crisis revisits due to the culture of impunity.

The government should make a list of the responsible traders and bring them to book to bring an end to the situation, he said.

On the other hand, the Directorate of National Consumer Rights Protection (DNCRP) and Chattogram district administration conducted drives at Khatunganj and Chaumuhuni on Saturday to check the skyrocketing price of onion.

DNCRP fined five firms Tk1 lakh and forced some wholesalers to sell onion at Tk120 per kg at Khatunganj.