Discrepancies in the onion market!

Onions as an isolated food item may not be significant but its role is undeniable as an essential garnish in Bangladesh as well as South Asia. Understandably, when the price of this item fluctuates, there is marked disquiet among buyers in kitchen markets around main cities of the country.

 Of late, onion has hogged the headline because in November this year, the price skyrocketed to almost Tk100 per kg. For obvious reasons, this created a furore because at the same time in November 2016, the price was Tk45-50 per kg.

But the caprice impacting the price does not end there since we have found that even at this moment, imported onions are selling at different rates in Dhaka and Chittagong with the wholesale rates standing at Tk 65 and Tk 45 per kg respectively.

Local onions are selling for Tk76 per kg whereas in Chittagong, the local variety was not found. Onion traders have reportedly stated that natural disasters in our neighbouring country impacted the soaring cost of onions and since the import, which faced a temporary hiccup earlier, is now back to normal, the prices are going down.

There are several disturbing dimensions to this onion imbroglio with the first being our total dependence on imported products, leaving out the local variety. It’s common sense that if local onion is more expensive, the masses will opt for the cheaper variety. The ultimate loss is for the local onions which may disappear from the market overtaken by a preference for the imported ones.  The second perturbing factor is the reported hoarding of imported onions which artificially created a rise in price. It seems that this unscrupulous trait persists among most traders.

While the price is back to almost normal now, the signals from the recent incident should prompt the authorities to strictly monitor markets and enforce a uniform price range for all cities.  At the same time, the local variety should be made cheaper than the imported ones otherwise our own desi variety of onions will soon become extinct.  Bangladesh has a yearly demand of 23 to 24 lakh tonnes of onions; so, keeping that in mind, a healthy balance is needed between imported and locally produced items.

 In order to bring down the price even lower, there can be initiatives to grow onions in large farms with the initiative vigorously supported by SME loans from banks.   With some strategic moves, the authority can ensure pungency of onions remains within food items and it does not affect the budget of the masses.

 

Discrepancies in the onion market!

Onions as an isolated food item may not be significant but its role is undeniable as an essential garnish in Bangladesh as well as South Asia. Understandably, when the price of this item fluctuates, there is marked disquiet among buyers in kitchen markets around main cities of the country. Of late, onion has hogged the headline because in November this year, the price skyrocketed to almost Tk100 per kg. For obvious reasons, this created a furore because at the same time in November 2016, the price was Tk45-50 per kg. But the caprice impacting the price does not end there since we have found that even at this moment, imported onions are selling at different rates in Dhaka and Chittagong with the wholesale rates standing at Tk 65 and Tk 45 per kg respectively. Local onions are selling for Tk76 per kg whereas in Chittagong, the local variety was not found. Onion traders have reportedly stated that natural disasters in our neighbouring country impacted the soaring cost of onions and since the import, which faced a temporary hiccup earlier, is now back to normal, the prices are going down. There are several disturbing dimensions to this onion imbroglio with the first being our total dependence on imported products, leaving out the local variety. Its common sense that if local onion is more expensive, the masses will opt for the cheaper variety. The ultimate loss is for the local onions which may disappear from the market overtaken by a preference for the imported ones. The second perturbing factor is the reported hoarding of imported onions which artificially created a rise in price. It seems that this unscrupulous trait persists among most traders. While the price is back to almost normal now, the signals from the recent incident should prompt the authorities to strictly monitor markets and enforce a uniform price range for all cities. At the same time, the local variety should be made cheaper than the imported ones otherwise our own desi variety of onions will soon become extinct. Bangladesh has a yearly demand of 23 to 24 lakh tonnes of onions; so, keeping that in mind, a healthy balance is needed between imported and locally produced items. In order to bring down the price even lower, there can be initiatives to grow onions in large farms with the initiative vigorously supported by SME loans from banks. With some strategic moves, the authority can ensure pungency of onions remains within food items and it does not affect the budget of the masses.