Onion prices start falling
An increased supply of onion has helped ease the bulb's recent price spiral in the local market, businessmen said yesterday.
The indigenous variety of onion retailed at Tk 70-75 a kilogram yesterday coming down from Tk 85-90 last week. The imported variety retailed between Tk 60 and Tk 65 a kg.
Onion prices declined in the international market over the last few days. Prices fell to $743 a tonne from more than $1,000 last week, according to traders.
At the wholesale market, local onion was sold between Tk 60 and Tk 65 per kg, while the imported variety from Pakistan, Egypt and Myanmar sold for Tk 52-55 per kg, said Hafizur Rahman, an onion importer at Shyambazar, the capital's largest wholesale market for vegetables.
“Demand for onion is also declining. We have an abundant supply of onion as we are importing onion from Myanmar, Egypt and Pakistan after India increased prices,” Rahman said.
Rahman spoke at a meeting on the price, stock and supply of basic commodities in the local market, chaired by Commerce Minister Tofail Ahmed at the office of Trading Corporation of Bangladesh in Dhaka. Importers, wholesalers and retailers of basic commodities attended the meeting.
Abdul Matlub Ahmad, president of the Federation of Bangladesh Chambers of Commerce and Industry, said Bangladesh imports three to four lakh tonnes of onion a year while it produces about 19.3 lakh tonnes in the same period.
“So, the crisis is temporary. The businessmen have the responsibility to bring back normalcy to the commodity market. But the government should also withdraw import tariff occasionally for imports of seasonal commodities such as onion and green chilli,” Ahmad said.
Fazlur Rahman, chairman and managing director of City Group, one of the major commodity traders, said the current stock of edible oil and sugar is enough to serve the local market until December.
“We have a sufficient stock of edible oil and sugar at this moment. The country needs 14 lakh tonnes of sugar a year and we have 17 lakh tonnes of sugar in stock,” Rahman said.
“Similarly, the current stocks of edible oil, wheat and flour are also adequate.”
The government will take punitive action against traders if they are found involved in unscrupulous activities in sales of basic commodities, said Hedayetullah Mamoon, senior secretary to the commerce ministry.
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