- Aarat is full of smuggled Indian onions
- In a span of 10 days, a kg has decreased by Tk 55-60
- Low demand and fears of rot are causing prices to fall rapidly
- Even after months of announcement, Indian onion has not officially arrived
The government of India stopped the export of onions on December 7 to maintain the supply in the domestic market. Soon after this announcement, the onion market of Bangladesh started to become unstable. The price started to increase. The price per kg is 240 taka. The government decided to import onion from India in the middle of February due to the fear that the price of onion may increase in the month of Ramadan. The Government of India also gave its in-principle consent. It is said by the government that Indian onions will arrive in the country before fasting. However, even after a month of announcement, Indian onion has not officially arrived in the country.
However, the streets of Khatunganj in Chittagong are filled with onions smuggled across the border. In just a span of 10 days, the price of Indian onion has fallen by Tk 55-60 per kg in the country’s second largest consumer goods wholesale market. The price of domestic onion has also decreased.
On Wednesday (March 20), local onion is being sold at 40 to 70 taka and Indian Nasik variety onion is selling at 60-65 taka in Khatunganj and Chaktai. Traders say supply of smuggled Indian onions has increased as indigenous onions are fully available in the market. On the other hand, due to low demand and fear of decay, prices are falling rapidly.
In August last year, the Indian government imposed a 40 percent tariff on onion exports to maintain supply as onion prices rose in the Indian domestic market. Then last October, the minimum export price of onion was set at 800 US dollars per ton. But since the price of onion increased in the domestic market and these measures were not effective, the government of India completely stopped onion export from last December 8. India’s Directorate General of Foreign Trade office imposed a ban on onion export till March 31 this year in an order on December 7.
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When India stopped exporting onion, the prices in the Bangladesh market started to rise. Onion is sold up to Tk 240 per kg in the country’s market. Later, when domestic onions started coming in the market, onions were sold at Tk 50-60 per kg. From the beginning of February, the price of onion started to increase again. Indian onion is sold at Tk 120-130 per kg even at the beginning of fasting in the retail market.
Onion price has decreased by Tk 55-60 per kg
Meanwhile, as the price of onion in the country’s market did not decrease, the government started a bidding war to import onions from India. Bangladesh government has sent a formal letter to India to allow export of sugar and onions in certain quantities during the month of Ramadan by reducing the prices in the country’s market. As a result, the Ministry of Commerce announced to bring 50 thousand tons of onions and one lakh metric tons of sugar. But despite the month of official announcement, the import of onion from India has not started under the government initiative.
However, due to the high price of onions in Bangladesh, onions started being smuggled from India. From the beginning of February, the sale of smuggled onions started in Khatunganj and Chaktai.
It can be seen on the ground on Wednesday that the places in Khatunganj and Chaktai are full of onions and they are selling at the same rate. However, the impact of price reduction in the wholesale market has not proportionally fallen on the retail market. Retail traders claim that the shops still have onions bought before Ramadan. Due to which most of the retail stores are now selling onions at a loss. A difference of 25-30 rupees per kg is observed from wholesale market to retail market.
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Trading Corporation of Bangladesh (TCB) said in their report on Wednesday that domestic onions are selling at Tk 60-70 per kg and imported onions at Tk 80-100 per kg in the retail markets of Dhaka city. Even a week ago, desi onion was Rs 80-100 and Indian onion was Rs 115-120. A year ago at this time, domestic onion was priced at just Tk 40-50 per kg and imported onion at Tk 35-45 per kg.
The market is full of smuggled onions
Meanwhile, on Wednesday morning, there were talks with traders and traders in Khatunganj and Chaktai. Manager of Bashar and Sons of Madhyam Chaktai. Shahid told Jago News, ‘Aarte is filled with Indian onions as well as desi onions. On Tuesday, Indian onion came to 55 rupees. Five rupees increased today. Even before fasting, Indian onion was sold at 120 rupees. Similarly, the price of desi onion has also decreased. Medium sized onions are being sold at Tk 50-52 per kg.
Md. Director of Messrs. Jamena Trading of Khatunganj. Azgar Hossain said, “At the beginning of fasting, the demand for all kinds of consumer goods increases. During this time most people market for the whole month. That’s why consumers bought more onions together at the beginning of fasting. After the start of fasting, the sale of onion in the wholesale or retail market has decreased. But the supply of onions in Aadha was normal. That’s why the price has fallen rapidly.’
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He said, ‘At present, local onions are coming from Pabna, Chuadanga, Faridpur, Rajbari to Khatunganj. Small and medium onion of Faridpur is being sold at Tk 40 to Tk 55 per kg. Apart from this, Pabna coarse grain good onion is being sold at Tk 65-70 per kg. Today (Wednesday) in the market of Faridpur, coarse grain onions are sold for Tk 2,400 to Tk 2,500. Coming to Khatunganj is 68 taka per kg (purchase price including all expenses).
Khatunganj’s Hamidullah Mia Bazar trader Abu Tayyab said, ‘Every corner of the market is filled with onions. Many people have placed onions on the pavement, unable to stop it. The price of Indian onion has come down along with that of desi onion. The price of Indian onion has fallen more. Before fasting Indian onion 120 rupees now 60 rupees. Before fasting, desi onion of 90 taka is now being sold at 50-55 taka.
India’s onion has not yet arrived on the legal path
General Secretary of Khatunganj Lamar Bazaar Traders Association. Idris told Jago News, ‘No onions are coming from India legally. All the Indian onions in the country are smuggled. The market is now flooded with smuggled Indian onions.’
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He said, ‘When the price was high before fasting, onion cutting did not start in the country. Now is the full season of desi onions. So the supply of native onion in the market has increased. Besides, Indian onion prices have come down due to its presence in the market. Moreover, the demand was high at the beginning of fasting, now the demand has reduced a lot. In this, retail sales are less, so the price in the wholesale market has decreased.’ However, farmers or traders are not facing any problem in the current market price, he said.
Meanwhile, the effect of halving the prices in the wholesale market did not affect the retail market. Indian onions are being sold at Tk 75-90 per kg in grocery stores in Kazi Deuri area of the city on Wednesday afternoon. Small and medium sized desi onions are also being sold at Tk 60-75 per kg. Babul Barua, the owner of Faiz Store in the market, told Jago News, ‘Grocery stores have to keep all kinds of items. We are still selling onions before fasting to meet the needs of customers. I am selling onions bought for 110 taka before fasting for 80-90 taka. A loss of 20-30 rupees per kg has to be calculated.
Iqbal Hussain/EA/MS
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