Onion prices have started going down in the local markets, but it is more prominent in the wholesale markets rather than the retail level.
In a matter of one week, the prices of locally grown (deshi) onion have gone down from Tk.140 to Tk.120. The price however, is much deviant from the wholesale markets where the new supply of local onion is being sold at Tk56 per kg.
The retail prices start from Tk.80 in some markets.
Indian onions are now being sold at Tk50-52 per kg at Dhaka’s wholesale market but it was costing as much as Tk80 at the retail level on Monday.
Abundant supply from districts like Faridpur, Joypurhat, Naogaon and Manikganj has contributed to brining the price under leash.
Traders are hoping the supply will be boosted further if there is no rain in the recent future.
Commerce Minister Tofail Ahmed said recently that the supply of the inevitable kitchen commodity is increasing daily and the prices will fall further.
“Prices of goods also rise at times because of excessive writings in the media. Onion is not an exception. The rise in onion price was temporary,” the minister had said on Monday.
Minister Tofail said the production of onion was not good this season in Bangladesh and India.
Onion prices started skyrocketing ahead of this year’s Eid-ul-Azha, which is a common trend since the commodity is in high demand during this occasion.
Business owners had blamed the rain for the drawback in productions and pushed the prices up. The retail markets felt the burn of the high prices.
When asked why onion prices were high despite a buoyant production in the local market this year, Commerce Ministry Secretary Shubhashish Bose said it was temporary.
“It will go down within a few days. Many roads were damaged because of incessant rain and flood. The transportation cost was higher than usual,” the secretary had said.
Commerce Ministry data show that the annual demand for onion is 2 to 2.2 million tons annually but it increases during Ramadan and Eid-ul-Azha.
Agriculture Ministry sources said Bangladesh produced 1.7 to 1.8 million tons of onion. Traders say the locally produced onion meets 60% of the demand and the rest in imported from India.