Retailers are selling onions at as high as Tk 200 a kilogramme in and outside of Dhaka, compared with Tk 130 on Thursday (Dec 7) in a shock development for consumers reeling under the higher cost of living. The prices of onions have increased by Tk 50 to Tk 60 per kg in Khulna as elsewhere in Bangladesh shortly after India banned its export till March 31 next year. The prices jumped in the wake of India's extension of the onion export ban on Friday. The neighbouring country India extended the ban until March, 2024 – three weeks before the current phase of restriction expired on December 31 – in order to increase the supply in the domestic market and control the price of the vegetable. Though wholesalers and retailers in Bangladesh are blaming India's ban extension for the sudden increase, market observers questioned the spike since the embargo was not new. Nahidul Islam, an onion trader, said the price of imported onion was higher as the importers imported onion at high price.  However, the recent announcement of India restricting export also made the onion market unstable. "There is no reason for the onion price to almost double overnight."    But retailers were selling the homegrown variety of onion at Tk 204 a kg at Karwan Bazar in Dhaka today (Dec 9), compared with Tk 130 per kg on Thursday. Prices of Indian onion rose to Tk 110 from Tk 50 to Tk 60 per kg. "Besides, there is not enough supply as per demand in the local market." Mohammad Abdul Mazed, general secretary of the Shyambazar Onion Wholesalers Association, said that India's export ban has had a big impact on the country's market. Rains in the past few days have also affected the prices. "Supply crunch is another reason for the price hike." The price has rocketed not just in Dhaka but also in other parts of the country.  

Government Has been fixed the prices of egg, potato and onion. Commerce Minister Tipu Munshi said that in a press conference On Thursday, 14 September.  The ministry set the price of egg at Tk 12 per piece, the price of onions at Tk 64-65 per kg, potatoes at Tk 35-36 per kg, bottled soybean oil at Tk 169 per liter, open (loose) soybean at Tk 149 per liter, and palm oil at Tk 124 per liter. The ministry has determined the prices based on the recommendations of the Agriculture Ministry and the Fisheries and Livestock Ministry.

The commerce ministry has requested National Board of Revenue (NBR) to withdraw duty over onion import as well as to withdraw duty imposed on none refined soyabean oil, palm oil and sugar as prices of these items have soared in the recent times. The request was made in a meeting organized with a view to keep stock, supply, import, price situation normal and static of the essential commodities held at the commerce ministry conference room on Monday afternoon. At the beginning of the meeting Import and Internal Trade division additional secretary AHM Shafiquzzaman said, recently prices of some essential commodities (such as edible oil, sugar, onion and lentil) have gone up influenced by the international market. As a result commerce ministry has taken some steps to keep the stock, import, supply and price situation static in the market. He said, prices of onion have gone up because of sudden rain in India but there is no crisis of the commodity against the demand. About the high price of edible oil the secretary said, the government will investigate about the issue of increased price. In the meeting Commerce Minister Tipu Munshi was connected virtually. AH 

Commerce Minister Tipu Munshi said, onion import has begun with cooperation from the government. But the price of onion cannot be downgraded below 55 taka per kilogram at the consumer level. He said this while distributing best reporting award-2020 of the Economic Reporters Forum at Purana Paltan in the capital on Sunday. The commerce minister said, an instable situation was created in the onion market last year. In this year we were prepared utilizing the previous experience. After creation of the crisis import of onion began with help of the government. The imported onion has begun to arrive in the country three days ago. After adding all the expenses including profit of the businessmen, commission of the importers, the price of onion cannot be downgraded below 55 taka per kilogram at the consumer level. He said, we are in a deficit of 8 to 9 lakh metric tons of onion comparing to our demand. The deficit is seen in the month of September every year. India used to meet 90 per cent of this demand. But currently they are facing deficit. Onion is selling at 105 to 110 Bangladeshi taka in Kolkata market and potatoes are selling at 55 taka. That means the price has increased in both the countries.     Tipu Munshi said, dependency on Indian onion has increased in the local market. They have stopped export for their internal crisis and increased price. But India did not tell us the matter earlier and suddenly stopped export. We have learnt lesson from the previous year. He said, I am involved in readymade garments sector and was the president of BGMEA. I know about the sector. After taking timely and right steps in the pandemic period this sector has turned to its previous position. AH

National Board of Revenue (NBR) has withdrawn the import duty on onion to control the prices. Now traders can import onion without imposed duty till March 31, 2021. The information was delivered through a press release of the public relations department of finance ministry on Sunday. The release said that the duty on onion has been withdrawn in this lean period following direction of the Prime Minister. Of the total imported onions more than 90 percent come from neighboring country India. As India suspended onion export on September 14, the price of this kind of spice went up by 50 taka per kilogram within one day of difference. During the budget of 2020-21 fiscal year five percent duty was imposed on onion import to discourage import and to ensure proper price for the onion growers in the country. As the price has gone up at the moment importers recommended for withdrawing the duty to the commerce ministry. On pretext of the demand of the businessmen commerce ministry recommended to NBR to withdraw the duty through a letter. AH

Nearly two hundred onion laden trucks have been standing on Indian side of border for the last five days as Indian government suspended onion export. Meanwhile, due to the hot spell and excessive rain those onions are being rotten. Importers think that they have to face a great loss in this situation. The businessmen demanded Indian government to allow those onions to enter in Bangladesh. According to the retail traders of Hili market, price of onion has gone up at the moment though it decreased after the news of import. In the difference of last two days prices of onion have increased by 15 to 20 taka per kg according to the variety. Today onion is selling at 50 to 70 taka per kg. Retail sellers and general buyers are in disarray at this situation. Retail sellers allege that importers are increasing the price by forming syndicate. AH     

Bangladesh Bank (BB) has asked banks to keep the margin on the opening of letters of credits (LCs) to import onion at a minimum level. “The prices of onion are on an upward trend at local markets following the price hike of the key cooking ingredient in international markets,” said a BB circular issued today. Under the circumstances, BB instructed banks to keep the margins on opening letters of credits (LCs) for importing onions at a minimum level. The instruction would be effective until December 31 this year. Source: BSS AH

Foreign Minister A K Abdul Momen has said, though India is regretful for halting onion export without any prior notice, but not a single onion laden truck against the previous issued LC has entered into Bangladesh. He said this while answering questions of the newsmen at the ministry on Thursday. The Foreign Minister said, more than hundred trucks at Benapole land port, around five hundred at Bhomra land port and around two hundred trucks at Hili land port are stranded on the Indian side of border against the previous issued Letter of Credit. India suddenly on September 14 suspended onion export. On that night a notification signed by Amit Jadav, director general of overseas commerce division of the Indian commerce and industries ministry mentioned that all types of onion export will be suspended until further notice according to the section 3 of the Indian overseas commerce act. Later on September 15 India permitted entering the onion laden trucks into Bangladesh under conditions but no truck has entered. Meanwhile, Bangladesh government has already given permission to 25 organizations to import 57 thousand metric tons of onion from 6 countries. The importers have said that prices will decrease when the imported onion arrives in the country. AH   

India has suspended onion export to Bangladesh from Monday afternoon. ‍As a result nearly 150 onion laden trucks were stranded at Petrapole. Same situation at the Bhomra land port, there no onion laden truck entered in Bangladesh from the morning. According to an Indian source, onion export is suspended through all ports in Bangladesh. Indian onion export organization suspended export after entering 50 metric tons of onion through Benapole land port. Indian businessman Kartik Ghosh on behalf of onion exporters association said, the association decided not to export onion in Bangladesh less than 750 US dollars per ton. As a result a number of vehicles were standing on the border. Rafiqul Islam Royal, an importer at Benapole said, we usually import onion from India at 250 US dollars per ton. But due to flood in India they have said that they would not export onion to Bangladesh less than 750 US dollars according to the local market price. For this reason they have suspended onion export. Onion businessman Anil Majumder from Bangaon area of India said, we have no objection to export onion to Bangladesh. We will resume export if LCs are issued at the market price. In this regard older LCs have be issued under new prices and the new LCs have to be issued at the rate of 750 USD per ton, in this way the onion import in Bangladesh may be made normal. Benapole Customs House Commissioner Azizur Rahman said, India without any prior announcement has suspended onion export demanding increase of price. They could have announced a timeframe. Meanwhile, retail businessmen have increased the price of onion by 5 taka and are selling at 65 taka per kg before the evening at Benapole area. AH    

In an effort to keep the supply and price of onion normal in the country, state-owned Trading Corporation of Bangladesh (TCB) will start selling it soon at a fair price. The task force committee of the Commerce Ministry took the decision at a meeting held at the Commerce Ministry on Sunday, said a handout of the Ministry issued on Monday. “TCB will start selling onion through trucks and it will continue until the new onions arrive in local markets,” it said. The meeting also discussed the prices and supply of essential commodities. The government will take stern action if any attempt is made to increase the price of onion artificially and hoard it illegally as there is no logical reason of price hike and supply crunch of onion, it said. Besides, Commerce Ministry monitoring team and Directorate of the National Consumers Rights and Protection have started market monitoring strongly. Committee members were present at the meeting while President of the Task Force Committee and also the secretary to the Commerce Ministry Dr Mohammad Zafar Uddin presided over it.  Source: UNB AH