The reason for the sudden jump in prices is the rise in prices in India. According to Indian media reports, rains damaged the onions stored in the country. For the same reason, harvesting of onion of the new season will also be delayed.
Masood Hossain, a vendor at Karwan Bazar, said the market had been a little higher for a week. It has increased more in the last two days
A consumer Kamrul Islam was returning from Karwan Bazar with 20 kg of onion. He said he had to buy onions at Tk 250 per kg last year, so he bought 20kg onions before the price got too high.
Last year, the price of onion rose to Tk 300 per kg in the country. The rise in prices began when India suddenly stopped exporting the kitchen essential to Bangladesh.
India set a minimum price of USD 850 per tonne for onion exports on 13 September last year to meet the demand of its own consumers. On 30 September, the country banned exports. The price of onion shot up to 300 by November. Traders imported onions from other countries by air that time.
There are four types of local onions in Karwan Bazar wholesale shops. The price of local onion grown in Rajshahi and Pabna is Tk 62 to 64 per kg. Faridpur's variety of onion is being sold at Tk 56 to 58 per kg. A variety of local onion called King costs Tk 54 to 56 per kg. Indian big onion is being sold at Tk 46 per kg.
Masood Hossain, a vendor at Karwan Bazar, said the market had been a little higher for a week. It has increased more in the last two days.
A report titled 'On the Rise: Onion Prices Threaten to Sky-Rocket' was published yesterday in the online edition of the Indian newspaper Financial Express. Last Friday, India's largest wholesale onion market in Lasalgaon, Maharashtra, saw a minimum price of Rs 10 per kg and a maximum of Rs 24 per kg.
According to the report, the new season onion will be available in the country in October. Bharat Dighole, president of the Maharashtra Onion Growers’ Association, said, “After a long time, farmers have started getting fair prices. If the government takes any step to control prices, we will resist.”
According to the Department of Agricultural Extension, Bangladesh produced 2.5 million tonnes of onions last season. However, there is confusion about the calculation of production and demand. About 95 per cent of imported onions come from India. If the import from India is disrupted for any reason, the importers look for other countries.
The price of onion rose at a time when the prices of essential commodities in the market were quite high. Prices of rice, edible oil, vegetables, potatoes, eggs, ginger, etc. have gone up. On the other hand, coronavirus and floods have reduced people’s income. But Abdul Majed, an importer in Shyambazar, Old Dhaka, said, the price has come down by Tk 5 to 6 per kg. The supply of local onions is quite good.