May 10, 2024
DHAKA – Onion price has increased by Tk 10 to Tk 15 per kilo in Dhaka’s kitchen markets over the past two days.
Retailers at Karwan Bazar, Kachukhet Bazar, Mirpur Kazipara, Ibrahimpur Bazar were selling onion for Tk 70-80 per kg compared to Tk 60-65 just three days ago.
The price of onion had been on the decline following the Indian government’s move to withdraw its ban on onion exports.
However, the Indian government’s imposition of a minimum export price of $550 per ton along with 40 percent export duties prompted the local traders to jack up the price in the markets.
The traders claim that after accounting for export duty, labour costs, and transport, the import price of Indian onions has increased to Tk 60–65 per kg, with the dollar trading between Tk 110 and 118.
Mohammad Majed, general secretary of the Shyambazar Onion Traders’ Association, also an importer, said, “If we import now, the price will be higher compared to the current market.”
Earlier, during India’s export restrictions last October, onion prices in Dhaka were stable at Tk 55-60 per kg in wholesale markets and Tk 65-70 in retail markets.
Following the removal of restrictions in March, rates fell briefly to Tk 50-55 wholesale and Tk 60-65 retail before the new export rules sent them soaring again.
However, many traders are stocking up on onions ahead of the Eid-ul-Adha next month when demand traditionally spikes.
The price shock has drawn anger from customers at Karwan Bazar such as private jobholder Jafor Hossain.
“Just two days ago I bought onions for Tk 60 a kg. But today [yesterday] it shot up to Tk 80, which is outrageous!”