Onion prices fall by Tk35-45 per kg in wholesale market
Traders say retail prices are still high because many vendors are still selling from earlier supplies
The wholesale price of onion in Dhaka has come down by Tk40-Tk45 per kilogramme as imports have resumed from India.
On Friday, onion sold for Tk35-40 per kg at Shyambazar, the biggest wholesale market in the capital.
General Secretary of Shyambazar Onion Traders Association Md Majed told The Business Standard that they sold local onions at Tk90 per kg a week ago.
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"As Indian onions started arriving on 6 June, prices have gone down. We are selling Indian onions at Tk35-Tk40 per kg in the wholesale market and local ones for Tk45-Tk50."
However, the price drop at the wholesale level has not affected the retail market, where the prices are still between Tk70 and Tk85 per kg.
In the Rampura market, local onion was being sold at the retail rate of Tk70 per kg, and the Indian variety at Tk60 per kg. Local onions were Tk10 and Tk15 pricier at kitchen markets in Matikata and Kallayanpur.
Mohammad Babul, a vendor at Karwan Bazar market, said local onions are being sold at Tk55-Tk60 and those imported from India at Tk40-Tk42.
He said the price will also decrease at the retail level. Many retailers are still selling from earlier supplies.
On Sunday, the government decided to import onions to reduce the suffering of people with limited income as a result of the abnormal price increase of this essential commodity.
On that day, onion prices jumped to Tk100 per kg at several kitchen markets.
According to the Department of Agriculture Extension, government efforts have increased onion production in the country by over 10 lakh tonnes in two years.
Bangladesh produced 35 lakh tonnes of onions in FY22, which slightly dropped to 34 lakh tonnes this year.
However, the net production last year was 24.53 lakh tonnes, excluding 25% to 30% wastage at various stages from collection to reaching the consumer.
About 30%-35% of locally produced onions are wasted every year due to a lack of proper storage and adverse weather conditions.
The annual demand for onion in the country is about 28 lakh tonnes.
