Onion becomes 33% costlier, prices of other commodities stay high

Onion prices in Dhaka have increased significantly in the past month, rising from Tk80-90 per kg to Tk110-120 per kg, a 33% increase. 

This increase coincides with a 40% duty imposed by India on onion exports and rising onion prices within India itself, according to onion importers and marketers.

Prices of other commodities like rice, potato and vegetables have also remained high during the period, while dry spice prices have eased somewhat. Industry insiders attribute high vegetable prices to disruptions in production due to recent floods and continuous rains.

A visit to Dhaka's kitchen markets on Friday found domestic and imported onions selling at Tk110-120 per kg, compared to Tk80-90 just a month ago.

Wholesalers in Shyambazar and Karwan Bazar are selling domestic onions at Tk110 per kg, while Indian onions are priced at Tk100. Businessmen anticipate these prices to remain high for the foreseeable future.

Abdul Majed, general secretary of the Shyambazar Onion Traders' Association, attributes the price hike to a significant decrease in onion supply at the market, estimated to be 25-30% lower. He suggests that higher import volumes could stabilise prices, but the high cost of importing onions from India is deterring businesses.

Similar trends are observed in Chattogram's Khatungonj, where retail onion prices currently range from Tk105-110 per kg, up from Tk88-90 before Eid.

According to the Department of Agricultural Extension, import permits have been issued for approximately 17.65 lakh tonnes of onions since June 2023. However, only 6.2 lakh tonnes have been imported so far.

Harun-ur-Rashid, president of the Hili Land Port Importer and Exporter Group, told TBS that with current prices at Tk70-72 per kg, additional import costs and spoilage risks, traders are reluctant to import onions.

Vegetable, rice prices show upward trend

The price hike extends beyond onions, with most vegetables exceeding Tk100 per kilogram.

Brinjals, spiney gourd, arum root, bitter gourd and long beans prices remain the highest. While okra, sponge gourd, snake gourd, luffa, pointy gourd, pumpkin and papaya go for under Tk80.

Carrots, cucumbers, and tomatoes are also experiencing price hikes. Green chillies are even steeper at Tk260-280 per kg wholesale, rising to Tk280-320 per kg retail.

Md Yusuf, a vegetable vendor in Dhaka's Shahzadpur, cites the high wholesale prices at Karwan Bazar as a reason for his own pricing.

Potato prices remain stable at Tk65 per kg retail, though the wholesale price sits at Tk58-60.

In contrast, rice prices have seen a Tk2-4 increase across most varieties in the past month.

Wholesale rice traders report a Tk100-200 per bag (50 kg) increase compared to pre-Eid prices. Md Shaon, a Karwan Bazar wholesaler, attributes this rise to mill-level price hikes, impacting almost all varieties. 

Poultry and eggs see price increases

Broiler chicken prices have seen another Tk10 per kg increase, reaching Tk170-180 per kg retail. Sonali chicken costs Tk320-340 per kg, brown eggs are Tk145-150 per dozen, and white eggs are Tk135-140 per dozen.

Consumers are feeling the pinch. Zahid Hasan, a Gulshan resident, said, "Everything from food to other necessities is more expensive. Now, even Tk2,000-3,000 weekly grocery budget does not seem to stretch as far as it used to."

Former food secretary Abdul Latif Mandal warns of potential further increases in food prices over the next 2-3 months. He cites the typical September-October price surge due to the "lean season" with minimal crop production. The recent heavy rains and floods could further exacerbate this trend, prompting the need for increased government monitoring.

Mixed picture for spice prices

While some spice prices have shown a slight decline, ginger and garlic remain expensive, according to the Bangladesh Wholesale Spice Traders' Association.

Amar Kanti Das, senior vice president of the association, attributes the overall high prices to the dollar crisis, over-trading, and losses incurred from cardamom sales.

Trading Corporation of Bangladesh data indicates that ginger prices have not budged much since Eid.

Currently, ginger retails for Tk280-300 per kg, with a wholesale price of Tk250. Garlic prices, which had also risen before Eid, remain unchanged at Tk200-220 per kg retail.

Cardamom, which has seen price hikes in recent months, continues to be a luxury spice. Retail prices currently range from Tk3,200-3,600 per kg while wholesale prices hover around Tk2,900-3,300 per kg.

Cumin prices show some fluctuation, with retail prices currently at Tk750-800 per kg. The wholesale price is Tk660 per kg.

Cloves and cinnamon exhibit a similar pattern. Cloves are priced at Tk1,600 retail and Tk1,320 wholesale.

Cinnamon currently retails for Tk560-600 and wholesales for Tk400.

The price of bay leaf, which doubled over the past year, has stabilised in recent months. It remains at Tk150-200 retail and Tk110-115 wholesale per kg.