Market monitoring, drives bring down onion prices

With the government monitoring the wholesale markets, onion prices dropped by Tk. 30-35 per kg in the city and elsewhere in the country.

Commerce Minister Tipu Munshi yesterday expressed hope that onion prices would further fall to Tk. 70-80 per kg within a couple of days.

In the retail markets, a kg of local onion sold for Tk. 90 as against Tk. 120 two days ago. Similarly, the price of Indian onion had dropped to Tk. 80 from Tk. 110.

Onion prices had shot up on Sunday immediately after the news of India banning exports to control its own domestic markets.

The prices went up by Tk. 35-40 due to manipulation by a section of traders to trigger an artificial crisis.

The commerce ministry took various measures to tackle the situation. These included the monitoring of markets in the country and sale of local onions through open market selling (OMS) at Tk. 45 per kg.

The drives against stock piling of onions in the wholesale markets, including the biggest market at Khatunganj in Chattogram and Shyambazar in Dhaka, on Tuesday also compelled traders to sell onions at previous prices. During a drive yesterday, the Chattogram district administration seized five tonnes of hidden onions from an iron and cement godown at Hathazari.

Hathazari upazila nirbahi officer (UNO) Mohammad Ruhul Amin, who conducted the drive, said a businessman, Amir Hossain, imported the onions from India on September 11 and stored them in the cement godown to cash in on an artificial crisis of onions in the area. Later, the trader was fined Tk. 59,000 for storing onions to create artificial crisis.

Also yesterday, the commerce minister told the media that 483 metric tonnes of onion has reached the country from Myanmar and another 500 metric tonnes were on their way. He expressed hope that prices would fall to Tk. 70-80 within a day or two as onions were being imported every day.

The minister said if the import price of per kg onion was Tk. 45, the price should be Tk. 50-60 at the wholesale markets.

 He wondered as to how prices had shot up to Tk. 100-120. He further said the ministry was taking measures against trading agencies and people involved in stock piling of onions to create artificial crisis.   In this context, the minister said a section of traders took the advantage of the Indian ban on exporting onions.

He also said the government was thinking whether the rate of newly imported onions could be fixed.

BSS adds: the central bank yesterday asked all scheduled banks to finance for onion import with 9 per cent interest aimed at preventing the upward trend of the onion price in the country.

“Recently, it is noticed that the onion price in the local market is upward due to rise in the price in international market. So, there is crisis of onion at the consumer level,” according to a Bangladesh Bank (BB) circular, issued here on the day.

In this circumstance, BB asked banks to finance in importing of onion with 9 per cent interest for ensuring enough supply of onion in the local market and preventing the upward trend of price. Besides, the BB suggested banks to keep the lowest margin for the onion import credit instrument.

 

Market monitoring, drives bring down onion prices

With the government monitoring the wholesale markets, onion prices dropped by Tk. 30-35 per kg in the city and elsewhere in the country. Commerce Minister Tipu Munshi yesterday expressed hope that onion prices would further fall to Tk. 70-80 per kg within a couple of days. In the retail markets, a kg of local onion sold for Tk. 90 as against Tk. 120 two days ago. Similarly, the price of Indian onion had dropped to Tk. 80 from Tk. 110. Onion prices had shot up on Sunday immediately after the news of India banning exports to control its own domestic markets. The prices went up by Tk. 35-40 due to manipulation by a section of traders to trigger an artificial crisis. The commerce ministry took various measures to tackle the situation. These included the monitoring of markets in the country and sale of local onions through open market selling (OMS) at Tk. 45 per kg. The drives against stock piling of onions in the wholesale markets, including the biggest market at Khatunganj in Chattogram and Shyambazar in Dhaka, on Tuesday also compelled traders to sell onions at previous prices. During a drive yesterday, the Chattogram district administration seized five tonnes of hidden onions from an iron and cement godown at Hathazari. Hathazari upazila nirbahi officer (UNO) Mohammad Ruhul Amin, who conducted the drive, said a businessman, Amir Hossain, imported the onions from India on September 11 and stored them in the cement godown to cash in on an artificial crisis of onions in the area. Later, the trader was fined Tk. 59,000 for storing onions to create artificial crisis. Also yesterday, the commerce minister told the media that 483 metric tonnes of onion has reached the country from Myanmar and another 500 metric tonnes were on their way. He expressed hope that prices would fall to Tk. 70-80 within a day or two as onions were being imported every day. The minister said if the import price of per kg onion was Tk. 45, the price should be Tk. 50-60 at the wholesale markets. He wondered as to how prices had shot up to Tk. 100-120. He further said the ministry was taking measures against trading agencies and people involved in stock piling of onions to create artificial crisis. In this context, the minister said a section of traders took the advantage of the Indian ban on exporting onions. He also said the government was thinking whether the rate of newly imported onions could be fixed. BSS adds: the central bank yesterday asked all scheduled banks to finance for onion import with 9 per cent interest aimed at preventing the upward trend of the onion price in the country. Recently, it is noticed that the onion price in the local market is upward due to rise in the price in international market. So, there is crisis of onion at the consumer level, according to a Bangladesh Bank (BB) circular, issued here on the day. In this circumstance, BB asked banks to finance in importing of onion with 9 per cent interest for ensuring enough supply of onion in the local market and preventing the upward trend of price. Besides, the BB suggested banks to keep the lowest margin for the onion import credit instrument.