Onion prices bring tears to eyes of consumers

Other kitchen essentials also pinch pockets

Fluctuating onion prices were the talk of the country in the outgoing year 2019. The price of this kitchen essential had shot up to record Tk. 250 at one point in mid-October, overshadowing discussions and concerns about all other commodity prices.

The year began with onions selling at Tk. 25–30 per kilogram but after India stopped exporting onions to the country at the beginning of September, the price hike records kept tumbling day after day.

According to the Trading Corporation of Bangladesh (TCB) data, the prices of local onions jumped to Tk. 250 per kg in the country's kitchen markets (as of November), registering a hike by up to Tk. 227 per kg, though The Independent found some retail shops selling local onions at Tk. 280 a kg.

On the other hand, the Consumers’ Association of Bangladesh (CAB) data showed onion prices soared by more than 810 per cent, leaving consumers teary-eyed.

However, along with onions, the year ended with the high price hikes of rice, sugar, soybean oil and some other essentials and kitchen ingredients. In mid-November, rumours had spread across markets in Dhaka about a salt crisis and rising prices of the staple. It was alleged that traders were selling salt at higher prices to the general public to cash in on the rumours.

However, the prices of vegetables and other essential commodities registered significant rises in general in the past one year, with onions, in particular, causing consumers to shed tears as the price of the spice skyrocketed by more than 500 per cent.

Origins of the onion price spurt

The initial price hike started on July 2, one month before Eid-ul-Azha. From July 2 to October 31, the onion price fluctuated 24 times.

On September 13, India prohibited exports of onions in the wake of its rising prices in the country. India’s commerce and industry ministry amended the export policy of onion from free to be prohibited. (India had exported fresh and chilled onions worth USD 496.82 million in 2018–19).

As a result, onion prices started to soar in Bangladesh's kitchen markets. On September 29, India banned onion exports altogether, which caused prices to spike in Bangladesh the next day, from Tk. 50 per kg a week earlier to Tk. 75 per kg. To tackle the crisis, the Bangladesh government imported onions from Myanmar, Turkey, Egypt and a few other countries. On September 17, the TCB began selling onions in open market sales (OMS) at Tk. 45 per kg.

Later, the authorities launched a drive to keep the prices under control. The commerce ministry also announced that a large shipment of onions would come, and yet, nothing could prevent the hike of onion prices. Traders and importers said prices increased because of supply shortages. But as per Bangladesh Bank (BB) data, Bangladesh imported 10.07 lakh tonnes of onion in the 2018–19 fiscal years, mostly from India, while the country needed to import only three lakh tonnes to meet its local demands. The Bangladesh Tariff Commission and the commerce ministry said the country required 26 lakh tonnes of onions annually, while the Department of Agriculture Extension (DAE) said the country produced 23 lakh tonnes. This meant that 88.46 per cent of the demand for onions could be met with local production and the remaining 11.54 per cent through imports.

Meanwhile, the Conscious Consumer Society (CCS), a consumer rights organisation, levelled the allegation that a syndicate of traders has pocketed around Tk. 3,180 crore in the last four months by manipulating the onion market and its prices.

The government later imported onions from Pakistan, Egypt and China, but the price of imported onions remained high, ranging between Tk. 180 and Tk. 230 a kg, depending on quality.

As a last resort, the buyers waited for the newly harvested local onions in the market and when the onions finally arrived in the markets, the buyers relaxed somewhat.

Rice, ginger & garlic prices rise

Again, in mid-November, amid an outcry over the skyrocketing prices of onions, the prices of rice, garlic and ginger have silently marked a northward trend.

Miniket rice was selling for Tk. 45–52 a kg just a week ago. But the prices have gone up by Tk. 3, being sold for Tk. 48-55 a kg in the capital’s kitchen markets yesterday. Also, the price of Nazirshail rice was Tk. 53–60 a kg yesterday as against last week's Tk. 52–56. Garlic imported from China was retailing at Tk. 140–170 a kg, while its local variety was selling for Tk. 160–180 in the kitchen markets in the capital. The price of ginger also increased by Tk. 10–20 a kg, with the local variety of the spice being sold for Tk. 150–160 per kg and the imported variety for between Tk. 140 and 200.

Rumours of salt price hike

On November 19, a rumour spread about the hike in the price of salt at different parts of the country, including Dhaka. Consumers were seen thronging the shops in different parts of Dhaka’s Karwan Bazar, Sylhet, Rajshahi, Rangpur, Dinajpur and Bogura for buying and stocking salt following the rumour that the price of salt would soar.

Salt sold previously for Tk. 30 per kg, but grocers and traders capitalised on the rumours and sold them for as high as Tk. 70 per kg. Shopkeepers and customers said that after the price hike of onions, there was a lack of confidence among people, which led them to panic buying of salt. The government urged all not to get confused with the rumour, saying the current salt reserves were much greater than what the country needed.

Northward trend in other commodity prices

The prices of other commodities like ginger increased by 27.27 per cent, garlic by 166.67 per cent, dried chillies by 25 per cent, lentils by 20 per cent, beef by 12.5 per cent, sugar by 14.56 per cent, and cardamom by 85.92 per cent over one year from December 8 last year, according to TCB data.

Meanwhile, during the last week of June, milk also made headlines after the presence of antibiotics, detergent, coliform and other forms of hazardous bacterial organisms was detected in the pasteurized milk products of five popular local brands. The research was conducted by a group of teachers of Dhaka University’s Pharmacy faculty.

Consumers also complained that as no action was taken against the syndicate behind the hike in onion price, others, too, dared to increase the prices of other items.

During Ramadan, price of all kinds of meat witnessed a hike. The Dhaka South City Corporation (DSCC) set the price of beef at Tk. 525, buffalo at Tk. 480, mutton at Tk. 750 and that of lamb at Tk. 650, but a number of traders was seen charging Tk. 50 more than the set prices. Besides, broiler chicken—which was Tk. 130 a kg earlier—increased to Tk. 155 to 165 per kg due to high demand.

In the retail markets, cardamom sold at prices higher by Tk. 1,200 to 1,600 a kg, a roughly 67 per cent increase, currently retailing at Tk. 3,400 to 4,000 per kg.  Prices of cinnamon also increased by Tk. 50 to 60 a kg, retailing at Tk. 400 to 420 a kg. Ramadan was also a difficult time for consumers, as the price of chickpeas increased by Tk. 10 to 20 per kg to Tk. 83 per kg.

What experts say

Consumer Association of Bangladesh (CAB) president Golam Rahman said the prices of commodities have risen because of increasing export growth. “The government should fix the export rate of commodities,” he said. “A group of unscrupulous traders take advantage of higher demand and then hike prices accordingly. The government should take strict action against those syndicates,” he added.

Palash Mahmud, the executive director of Conscious Consumer Society (CCS), told The Independent that the government should make a vigorous attempt to control the kitchen market prices for the sake of the consumers. He said the authorities have set a fixed rate for the essential cooking ingredient to impart stability to the market and ensure the prices do not increase any further.

“It is true that here in Bangladesh, the monthly income of a consumer does not increase at the same pace at which the prices of essential commodities increase every day. It exerts a big pressure on him. It’s tough for him to maintain his family properly,” said Mahmud.

He mentioned that the government itself has acknowledged that there is a syndicate behind the price hike. This syndicate should be booked under the law speedily, he iterated. “I think the government will set the prices of essential commodities within a certain range in the coming year and properly regulate the market,” he added.

Onion prices bring tears to eyes of consumers

Other kitchen essentials also pinch pockets

Fluctuating onion prices were the talk of the country in the outgoing year 2019. The price of this kitchen essential had shot up to record Tk. 250 at one point in mid-October, overshadowing discussions and concerns about all other commodity prices. The year began with onions selling at Tk. 2530 per kilogram but after India stopped exporting onions to the country at the beginning of September, the price hike records kept tumbling day after day. According to the Trading Corporation of Bangladesh (TCB) data, the prices of local onions jumped to Tk. 250 per kg in the countrys kitchen markets (as of November), registering a hike by up to Tk. 227 per kg, though The Independent found some retail shops selling local onions at Tk. 280 a kg. On the other hand, the Consumers Association of Bangladesh (CAB) data showed onion prices soared by more than 810 per cent, leaving consumers teary-eyed. However, along with onions, the year ended with the high price hikes of rice, sugar, soybean oil and some other essentials and kitchen ingredients. In mid-November, rumours had spread across markets in Dhaka about a salt crisis and rising prices of the staple. It was alleged that traders were selling salt at higher prices to the general public to cash in on the rumours. However, the prices of vegetables and other essential commodities registered significant rises in general in the past one year, with onions, in particular, causing consumers to shed tears as the price of the spice skyrocketed by more than 500 per cent. Origins of the onion price spurt The initial price hike started on July 2, one month before Eid-ul-Azha. From July 2 to October 31, the onion price fluctuated 24 times. On September 13, India prohibited exports of onions in the wake of its rising prices in the country. Indias commerce and industry ministry amended the export policy of onion from free to be prohibited. (India had exported fresh and chilled onions worth USD 496.82 million in 201819). As a result, onion prices started to soar in Bangladeshs kitchen markets. On September 29, India banned onion exports altogether, which caused prices to spike in Bangladesh the next day, from Tk. 50 per kg a week earlier to Tk. 75 per kg. To tackle the crisis, the Bangladesh government imported onions from Myanmar, Turkey, Egypt and a few other countries. On September 17, the TCB began selling onions in open market sales (OMS) at Tk. 45 per kg. Later, the authorities launched a drive to keep the prices under control. The commerce ministry also announced that a large shipment of onions would come, and yet, nothing could prevent the hike of onion prices. Traders and importers said prices increased because of supply shortages. But as per Bangladesh Bank (BB) data, Bangladesh imported 10.07 lakh tonnes of onion in the 201819 fiscal years, mostly from India, while the country needed to import only three lakh tonnes to meet its local demands. The Bangladesh Tariff Commission and the commerce ministry said the country required 26 lakh tonnes of onions annually, while the Department of Agriculture Extension (DAE) said the country produced 23 lakh tonnes. This meant that 88.46 per cent of the demand for onions could be met with local production and the remaining 11.54 per cent through imports. Meanwhile, the Conscious Consumer Society (CCS), a consumer rights organisation, levelled the allegation that a syndicate of traders has pocketed around Tk. 3,180 crore in the last four months by manipulating the onion market and its prices. The government later imported onions from Pakistan, Egypt and China, but the price of imported onions remained high, ranging between Tk. 180 and Tk. 230 a kg, depending on quality. As a last resort, the buyers waited for the newly harvested local onions in the market and when the onions finally arrived in the markets, the buyers relaxed somewhat. Rice, ginger garlic prices rise Again, in mid-November, amid an outcry over the skyrocketing prices of onions, the prices of rice, garlic and ginger have silently marked a northward trend. Miniket rice was selling for Tk. 4552 a kg just a week ago. But the prices have gone up by Tk. 3, being sold for Tk. 48-55 a kg in the capitals kitchen markets yesterday. Also, the price of Nazirshail rice was Tk. 5360 a kg yesterday as against last weeks Tk. 5256. Garlic imported from China was retailing at Tk. 140170 a kg, while its local variety was selling for Tk. 160180 in the kitchen markets in the capital. The price of ginger also increased by Tk. 1020 a kg, with the local variety of the spice being sold for Tk. 150160 per kg and the imported variety for between Tk. 140 and 200. Rumours of salt price hike On November 19, a rumour spread about the hike in the price of salt at different parts of the country, including Dhaka. Consumers were seen thronging the shops in different parts of Dhakas Karwan Bazar, Sylhet, Rajshahi, Rangpur, Dinajpur and Bogura for buying and stocking salt following the rumour that the price of salt would soar. Salt sold previously for Tk. 30 per kg, but grocers and traders capitalised on the rumours and sold them for as high as Tk. 70 per kg. Shopkeepers and customers said that after the price hike of onions, there was a lack of confidence among people, which led them to panic buying of salt. The government urged all not to get confused with the rumour, saying the current salt reserves were much greater than what the country needed. Northward trend in other commodity prices The prices of other commodities like ginger increased by 27.27 per cent, garlic by 166.67 per cent, dried chillies by 25 per cent, lentils by 20 per cent, beef by 12.5 per cent, sugar by 14.56 per cent, and cardamom by 85.92 per cent over one year from December 8 last year, according to TCB data. Meanwhile, during the last week of June, milk also made headlines after the presence of antibiotics, detergent, coliform and other forms of hazardous bacterial organisms was detected in the pasteurized milk products of five popular local brands. The research was conducted by a group of teachers of Dhaka Universitys Pharmacy faculty. Consumers also complained that as no action was taken against the syndicate behind the hike in onion price, others, too, dared to increase the prices of other items. During Ramadan, price of all kinds of meat witnessed a hike. The Dhaka South City Corporation (DSCC) set the price of beef at Tk. 525, buffalo at Tk. 480, mutton at Tk. 750 and that of lamb at Tk. 650, but a number of traders was seen charging Tk. 50 more than the set prices. Besides, broiler chickenwhich was Tk. 130 a kg earlierincreased to Tk. 155 to 165 per kg due to high demand. In the retail markets, cardamom sold at prices higher by Tk. 1,200 to 1,600 a kg, a roughly 67 per cent increase, currently retailing at Tk. 3,400 to 4,000 per kg. Prices of cinnamon also increased by Tk. 50 to 60 a kg, retailing at Tk. 400 to 420 a kg. Ramadan was also a difficult time for consumers, as the price of chickpeas increased by Tk. 10 to 20 per kg to Tk. 83 per kg. What experts say Consumer Association of Bangladesh (CAB) president Golam Rahman said the prices of commodities have risen because of increasing export growth. The government should fix the export rate of commodities, he said. A group of unscrupulous traders take advantage of higher demand and then hike prices accordingly. The government should take strict action against those syndicates, he added. Palash Mahmud, the executive director of Conscious Consumer Society (CCS), told The Independent that the government should make a vigorous attempt to control the kitchen market prices for the sake of the consumers. He said the authorities have set a fixed rate for the essential cooking ingredient to impart stability to the market and ensure the prices do not increase any further. It is true that here in Bangladesh, the monthly income of a consumer does not increase at the same pace at which the prices of essential commodities increase every day. It exerts a big pressure on him. Its tough for him to maintain his family properly, said Mahmud. He mentioned that the government itself has acknowledged that there is a syndicate behind the price hike. This syndicate should be booked under the law speedily, he iterated. I think the government will set the prices of essential commodities within a certain range in the coming year and properly regulate the market, he added.