New seasonal onions soar to Tk100 a kg again

The prices of new onions – widely known as Murikata or early variety – have shot up by Tk10 per kg in just 48 hours in the retail markets of the capital, thanks to a slight reduction in the supply.

Retailers and wholesalers across Dhaka, including in Badda, Rampura, Malibagh, Moghbazar, and Karwan Bazar, on Monday said the seasonal variety, which was selling for a maximum of Tk90 two days ago, has now risen to Tk100.

Mizanur Rahman, a grocer in Badda, told The Business Standard that the price has increased in the wholesale market over Sunday and Monday. "We have to sell in alignment with that rate. Now it is not possible to sell below Tk100," he added.

According to market analysis data from the Trading Corporation of Bangladesh (TCB), the price of domestic onions is 153% higher than in the same period a year ago.

Wholesalers in Karwan Bazar said the prices of new onions have risen in wholesale markets such as Pabna and Faridpur districts, the biggest hubs of onion production, due to a slight decrease in supply.

According to them, onions are selling for Tk85-90 per kg, depending on quality, which was Tk76-78 two days ago and was sold at Tk78-80 yesterday.

M Ashraful, a dealer in Karwan Bazar, told TBS, "As the supply of Murikata onions has decreased slightly, wholesalers outside Dhaka have increased the prices. Accordingly, we also had to increase the price."

Agricultural officials say early varieties of onions started arriving in the market in the first week of December. Just prior to this, the price of onions went up to Tk220. Rates skyrocketed overnight as India stopped exporting onions. Murikata onions have played a major role in bringing down the high prices.

Md Roknuzzaman, additional deputy director (Grains) of the Department of Agricultural Extension in Pabna, told TBS, "The production of Murikata onions is in the final phase. On the other hand, onions from the prime season will start arriving in the market around March-April."

According to the Ministry of Agriculture, early varieties of onions are cultivated on about 50,000 hectares of land in the country. This year's production target is around 8 lakh tonnes. These onions play a major role in meeting the demand during the period from December to February. However, due to the increase in price this time, there is a tendency among farmers to sell Murikata onions quickly in the market.

As a result, the supply started to decrease in the last part of January itself. The situation of onion imports has not been favourable for more than one and a half months due to the stoppage of India's exports, despite the advice from the Bangladesh Trade and Tariff Commission to deal with the supply crisis by importing from other countries.

On the other hand, onions, which are used as a supply throughout the year, are planted in December-January and start arriving in the market during March-April.

According to data from the Department of Agricultural Extension, the onion production target this year has been set at 36.73 lakh tonnes, whereas the production last year was about 34 lakh tonnes.

The original production was calculated at 25.49 lakh tonnes, taking into account a 25% post-harvest loss. The country's annual demand for onions is around 28 lakh tonnes, fulfilling 70% of the demand.

Market people suggest that initiatives should be taken to increase imports from alternative countries other than India before the arrival of new onions in February and March. In December, the Tariff Commission, in its report, recommended importing onions from Egypt, Turkey, China, Pakistan, Afghanistan, the Netherlands, and Malaysia as alternatives to India.