Onion prices skyrocketing
It is unfortunate that capitalising on India's export ban on onion, the traders in the country have exponentially increased the prices of this daily essential item. Now, one kilogram of locally produced onion is being sold at Tk 120 at the kitchen markets across the capital, whereas at the beginning of September, the same amount of onion was selling at Tk 35 to Tk 45 in the local market. Reportedly, India has imposed a ban on onion export as a number of its onion-exporting states faced severe flooding this year which affected their production. Although we currently have no shortage of stocks of onions in the country, the traders and hoarders are only taking advantage of India's ban. They have hiked the prices even though their stockpiles were bought at much cheaper rates. Under the circumstances, it is the low-income people who are suffering the most.
Bangladesh does not produce enough onion to meet its domestic demand. Around 11 lakh tonnes of onions are imported every year to meet the demand of about 24 lakh tonnes. Since Bangladesh imports bulk of its requirement from India, the ban would, no doubt, have an impact on our market. However, we should not face any crisis of onions in the market at the moment since we currently have a stock of three lakh tonnes of onions, according to the commerce secretary.
The government should strictly monitor the market and ensure that no artificial crisis is created by the hoarders. The government can also take legal action against the traders for increasing the price under the Control of Essential Commodities Act. According to the Act, 17 essential items, including onions, must be sold at government fixed rates.
It is good to know that the TCB has taken initiatives to sell onions at a cheaper price at 35 points of the capital. This would surely give some respite to the low-income people. Also, the government's initiative to import onions from Egypt, China and Singapore to maintain adequate supply in the market is praiseworthy. However, as a long-term solution, the government should seriously consider increasing onion production in the country.
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