Reduced supply causing rise in onion prices

Onion prices shot up in Dhaka markets over the last one week as supply of imported bulbs and early harvested varieties declined.

Locally grown onions are being traded at Tk 45-50 per kg today, said Riaz Hossain, an onion and spices retailer at Mohammadpur Town Hall Market today.

Retail prices were Tk 35-40 a week ago, data of Trading Corporation of Bangladesh showed.

Prices have gone up as stock and supply of early harvested onions, known as “Murikata onion”, depleted, said traders.

Market is likely to see increased supply in the next one-two weeks owing to beginning of harvesting. Onions from India have started arriving over the last two-three days, said Ashadul Islam of Milon Enterprise, an importing firm at Bhomra land port — one of the biggest land ports for onion import.

Shah Alam, an onion wholesaler at  Mohammadpur Krishi market, said supply of onions increased at whoesale level.

Prices are likely to decline, he said.

He said the main harvesting season of onions has started. Market is likely to be stable in two weeks, he added.

Bangladesh requires 25-30 lakh tonnes of onion annually and it has to import roughly 10 lakh tonnes as domestic production falls short.