Onion price soars even in peak season

It is peak harvest season, but the price of onion has soared by Tk 10 per kilogram at the capital's kitchen markets over the last three days.

Retailers at Karwan Bazar and Shewrapara kitchen markets in Dhaka sold onion for Tk 90-100 a kg yesterday, up from Tk 80-90 three days ago.

Sajib Sheikh, a wholesaler at Karwan Bazar, said he sold onions to retailers for Tk 82 per kg yesterday, an increase by Tk 10 from three days ago.

The general secretary of Shyambazar Onion Traders' Association, Abdul Mazed, blamed India's ban on onion export since December 8 for the rise in price.

Md Tarikul Islam, a senior agricultural marketing officer in Pabna, said farmers had harvested premature crops just to maximise profits. This has led to a supply shortage, causing the price to go up, he added.

"Traders are visiting farmers' houses to buy onion, but the growers don't have enough stock. The competition among the traders is driving onion prices up," the official said.

The price of potato has gone up as well during peak harvest season.

Retailers at the capital's kitchen markets yesterday sold the tuber for Tk 45-50 per kg, an increase by Tk 5 from about a week ago.

Mohammad Sabuj, a wholesaler at Karwan Bazar, said he sold potato for Tk 38 per kg to retailers yesterday, up from Tk 34 a week ago.

Consumers yesterday had to spend Tk 140 for buying a dozen of brown eggs, up from Tk 135 last week.

On October 28 last year, India imposed a minimum export price of $800 per tonne for onions -- much higher than the prices at which importers were buying -- to curb export and increase domestic availability and to keep prices in check until December 31.

On December 8, the country extended the ban on onion exports till March 31 with the same purpose.

RICE PRICES UNCHANGED

Prices of rice remained unchanged at Dhaka's kitchen markets yesterday compared to the last three weeks despite the government's deadline for traders to cut prices within four days.

On January 17, rice traders and millers pledged to reduce prices after Food Minister Sadhan Chandra Majumder set the deadline for price cuts.

Retail prices of the staple went up by Tk 2-8 per kg three weeks ago, placing a further burden on the low- and middle-income people already grappling with increased prices of essentials.

In wholesale markets, the prices dropped by Tk 1 to 1.5 per kg over the last few days, but this has yet to have an impact on the retail prices.

Traders think it will take at least a week for retail prices to drop because the retailers are still selling from their previous stock purchased at higher prices.

Nirod Boron Saha, president of the Rice and Paddy Stockists and Wholesalers Association in Naogaon, a major rice wholesale hub in the north, said they cut rice prices by Tk 1-1.5 a kg due to pressure from the government.

He, however, pointed out that paddy prices are high this season.

"There is no scope for reducing the rice prices if the paddy prices do not drop," he added.