The Commerce Ministry has expressed concern over the possibility of price hike of onion in local market as India has increased its minimum export price from $300 to $500 per tonne, an official concerned said.
India yesterday raised the export price of onion to maintain price level in the country as fear for a shortage grows due to unfavourable weather conditions.
As a result, the price of onion imported from India will stand at Tk38.81 per kilogram.
The official said they had already estimated the price and supply of Indian onion. “But our estimation is now meaningless as the Indian government has hiked the minimum export price of onion again.” He added: “Our onion market plan for Ramadan is in jeopardy.”
Outgoing Commerce Secretary Mahbub Ahmed declined to comment on the issue. “I am yet to see the report,” he said.
Earlier, the secretary said: “We have enough stock of onion in the local market. So, there is no possibility of price hike of this essential item during Ramadan.”
Monthly consumption of onion in the country was 1.40 lakh tonnes which might double during Ramadan, he added.
Bangladesh produced about 13.58 lakh tonnes of onion last year against an annual requirement of 22 lakh tonnes. The shortfall of 8.50 lakh tonnes was imported from India, Mahbub said.
He also assured that a large number of letters of credit were opened with commercial banks in border areas for importing onion from India.
According to the commerce ministry report, onion sold at Rs26 and Rs30 in Kolkata and New Delhi respectively two days ago.
Golam Mawla, general secretary of Moulvibazar Traders Association, told the Dhaka Tribune that the onion price would definitely reach Tk80 per kg within two or three days during Ramadan due to fresh hike in India.
He also claimed that of total onion demand, 80% was met with import from India. “A few importers are now importing onion from China at cheap rate.”
Indian onion sold at Tk45 per kg at city kitchen markets yesterday while local onion for Tk42 per kg.
On June 17, the Indian government imposed a minimum export price of $300 per tonne for onion to regulate exports amid an inflation scare at home.
In Bangladesh, the onion price hit an all-time high of Tk110 per kg in October last year.
