Onion OMS soon to tame prices
The commerce ministry has once again decided to go for open market sales (OMS) of onion in Dhaka to tame the kitchen staple's spiralling prices.
The decision was taken at a taskforce meeting, headed by Commerce Secretary Md Jafar Uddin, after onion trading came to a halt at Chattogram's Khatunganj after two mobile court drives in the wholesale hub.
The state-owned Trading Corporation of Bangladesh will soon start selling onions and continue until the next harvest season in the coming winter, the commerce ministry said in a statement on Sunday.
However, it did not mention when exactly said sales will begin.
The taskforce did not find any reason behind the sudden price hike of onion as, according to market data, local markets have a smooth supply and an adequate stock of the vegetable.
A section of unscrupulous traders may have purposely increased its prices to make brisk business at expense of their customers, which is a punishable crime, the statement said.
So, the government has decided to take tough action against people who might be found to be involved in the creation of an artificial crisis and unlawful stockpiling of onion.
Profiteering through the stockpiling or hoarding of essential commodities is punishable by law and so, the government has strengthened market monitoring in order to nab the culprits, the ministry added.
The taskforce also decided to request the National Board of Revenue to reschedule the tariffs on onion imports to ensure an increased supply of the kitchen staple.
This week, local onion prices hovered between Tk 60 and Tk 65 per kilogram while imported ones were sold at Tk 55-60 per kilogram.
However, onions were sold at Tk 25-35 per kilogram just a month ago in different kitchen markets in Dhaka.
Last year, prices rose abnormally to Tk 250 per kilogram due to a supply-chain disruption from India, a major source of onion for Bangladesh. The government had to import onions by air to tame the price spiral.
Yesterday, the Chattogram district administration conducted mobile court drives at various kitchen markets and fined seven stores Tk 14,000 for the illogical price hike.
On Sunday, magistrates also fined 10 warehouses in Khatunganj Tk 77,000 when they failed to show proper purchase documents that could justify their onion sales rates.
After the mobile court drive, trading remained at a halt for 12 hours across over 50 warehouses located in and around Hamidullah Mia Market of Khatunganj, where other goods like garlic and ginger are also stored and traded.
Traders also blocked the hub's main thoroughfare to stage a demonstration.
"The fines were unjust," they alleged yesterday.
Traditionally, purchase documents are not provided during onion trade, said Faruk Ahmed, a commission agent and owner of the Ira Traders warehouse in Khatunganj.
Actually, importers and traders from different land ports fix onion prices and instruct the traders at Khatunganj over the phone on which rates to sell, he said, adding that they do not appreciate the price hikes.
Warehouse owners only sell goods in exchange of commission, he said.
The wholesale price onion started to rise at Khatunganj since Thursday, hitting Tk 42-43 per kilogram on Saturday, up from Tk 30-32 on Wednesday.
The recent price hike for onions in India and various land ports in Bangladesh caused this upward trend in Khatunganj, according to numerous traders.
Retail prices at different kitchen markets also rose by Tk 10 to Tk 15 per kilogram.
Most onion warehouses are located at the Hamidullah Mia Market of Khatunganj.
The association did not announce the protest, rather the traders who were victims of the mobile court kept their stores shut on their own accord, said Muhammad Idris, general secretary of the Hamidullah Mia Market Traders Association.
The traders and warehouse owners were in an emergency meeting to find a solution to the current problem until a report on the matter was submitted yesterday.
Since Saturday afternoon, some warehouse owners have been trying to sell the perishable good at reduced rates due to the drop in sales caused by a sudden rise in prices.
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