Onion prices drop a little

The prices of onions have come down in the country's markets despite India's indefinite ban on the export of the vegetable.

The onion prices have fallen by Tk 5-8 in wholesale and retail markets over the last two days.

On March 23, the neighbouring country extended its ban on onion exports indefinitely -- a surprise move that comes ahead of a general election for which the prices of onions increased here and remained high for two days.

Two days later, the prices started falling. Per kg onions are now being sold at Tk 52-60, down from Tk 60-65 in the retail markets, while per kg onions are being sold at Tk 42-52, down from Tk 47-53 in the wholesale markets, reports our correspondents after visiting the capital's Karwan Bazar, Kochukhet, Ibrahimpur, Shewrapara, and Mirpur 11 kitchen markets.

Most traders say the supply has increased while others cite a decrease in demand as the reason behind the price drop.

Sajib Sheikh, proprietor of M/s Matribhandar at Karwan Bazar, said that onion prices fell as people brought large quantities of onions following the extension of the export ban by India.

"As people brought large numbers of onions, the demand for the onions has now decreased, resulting in the fall in prices," he said.

Sajib used to sell 800 to 900 sacks of onions every day before three days ago; now he is selling 150 to 200 sacks.

Meanwhile, Ashraf Sarkar, an onion grower in Pabna's Sathia upazila, said three days ago he sold per kg of onion at Tk 42, but now he is selling per kg onion at Tk 37.

"I used to sell onions at Pabna's Sathia local market. But as customers were asking for low prices, I took the onion to Karwan Bazar. I had to spend additional money for transportation but I could not make a profit," he added.

Sultanan Nasira, assistant director (Market Link-1) (Additional Duties) at the Directorate of Agricultural Marketing, said the prices of onions increased after the announcement of the export ban by India and remained high for two days.

"But later on, the prices fell and it did not impact the local domestic onion market as it is the peak season for onion production," she added.

Earlier on October 28, last year, India imposed an export ban on onions to curb export and increase domestic availability until December 31. Later, the country extended the ban which was due to expire on March 31 this year.

However, the government issued an order late on Friday that the ban will remain in place until further notice.