Onion price expected to come down

Onion prices are set to drop further in the country as the Indian government has withdrawn the fixed minimum price on its export.

The authorities of the neighbouring country, which is a major source of onion for Bangladesh, made the decision nearly two and a half months after the price had been imposed, said importers at Hili Land port in Dinajpur.

A letter, in this regard, was received by the Indian exporters on Friday and the new move came into effect yesterday.

Khokan Sarker, an onion exporter from India, told journalists near the port that the National Agricultural Cooperative Marketing Federation of India Ltd (Nafed) has lifted the price restrictions, which had been imposed on November 23, last year. 

Onion prices started soaring in Bangladeshi local markets early October last year.

At the end of that month, Nafed raised the minimum export price for each tonne of onion to $350 from $250. The price was later raised to $500 and finally on November 23, it was fixed at $850.

On January 20 this year, the rate was slashed by $150 to $800.

Harun Ur Rashid, president of importers and exporters association at Hili Land Port, said from now on, Bangladeshi traders can import onion as per their choice.

“We are hoping that onion prices would go down in the local markets in a couple of days after onion is imported under the fresh arrangements,” he said.

Currently, each kilogramme of imported onion is being sold at Tk 60 in the local markets while it is Tk 55 in the wholesale markets.