Bangladeshi traders hope to do good business as India cut onion prices by $150 per tonne, nearly two months after they raised it to $852. 

As the decision came into effect yesterday, importers in Bangladesh can now buy each tonne of onion from the neighbouring country at $702, reports our Dinajpur correspondent.   

Harun Ur Rashid President of Importer and Export Group and a member of clearing and forwarding agent (C&F Agent) of Hili Land Port of Hakimpur upazila in Dinajpur told the correspondent that they got a letter regarding the latest price yesterday afternoon. 

On November 23 last year, National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) fixed Minimum Export Price (MEP) for onion at $852 for each tonne on the ground of onion shortage in the country's domestic market. 

India reset the MEP then after nearly two years for increasing supply in its domestic market and curb price hike there.

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Onion prices soaring

Now onions can be imported at $702 through any land ports, Harun said quoting the NAFED letter. 

Traders in India also received the letter which came effective from Saturday, said Khokon Sarkar, an exporter and importer of Indian Hili area.

The government of Indian raised onion export price in early October last year, the traders said. 

India slashed its onion export price for the first time in last two months, said the traders.

The country had less onion production last season due to adverse weather. Besides, many farmers could not save their produced onion due to the torrential rain and floods which hit the country in August last year, he added. 

Today, a large number of onion importers were seen opening the letter of credit (LC) at the designated banks under fresh rate for importing the onion from India, said Harun expressing his hope that price of this vital ingredient to drop with in a day or two. 

During a visit at local markets in Dinajpur recently, this correspondent found each kilogramme local was sold at Tk 70 to 72 while imported onion at Tk 60 to 62 at retail markets. 

At wholesale markets, it is available at Tk 65 (local) and Tk 55 (Indian) respectively. 

In early October last, each kilogramme imported onion was on sale at Tk 25 per kilogramme.