NEWS report said India has increased the export price of onion from $ 175 to $430 at a time Bangladesh is heavily dependent on imported onion to meet domestic shortfall. It is not clear why India has taken the step at this moment knowing well that the demand for onion peaks up during Eid-ul-Azha; which is scheduled to be held later next month. Onion now sells in the city market and all over the country at around Tk 70 per kg and consumers fear that the price may further escalates soon.
Reports said Bangladesh has started importing onion from Myanmar from this week but it is still not clear how far it may help to reduce dependence on Indian onion. Moreover, it is yet to be seen whether the local importers would use the merchandise to keep the market prices down or resort to hording to create an artificial supply gap to raise the prices up. Bangladesh produces enough onion at around 19 lakh tones of onion annually in some estimate as against the demand for over 22-23 lakh tones. It shows a short fall of at least four lakhs tones.
Allegations galore that importers are showing fake import prices of onion from India to justify artificial onion prices in the market. A recent report referred to a commerce ministry finding saying checking in two onion consignments at Bomra landport revealed that the importer’s money receipt of the consignments showed the import price almost double the L/C price. It may be an attempt to show higher import cost to claim higher prices in local market.
Market information suggest local demand for onion stands at around 22 lakh tones as against local production at 19 lakhs tones. On the other hand, import figure in 2014 stood at 10,86 lakh tones as against 13,58 lakh tones in the previous year. Thus the local production figure don’t support the need for huge import in the first place raising fear that money laundering is taking place under the cover of fake onion import. Moreover, it suggests that the country’s stock position is more than enough any time to plug an artificial supply shortfall.
But still the onion prices are soaring and it appears as per a news report that the commerce ministry is still reluctant to sit with importers to sort out the market situation. It said the ministry has postponed a meeting with importers and other market players which was scheduled for Sunday (today) at a time when the government intervention is very important to keep the prices down.
Many believe that time is running out and the government must act quickly to stabilize the onion market before it becomes too much over heated.
