India’s onion price hike heats up market29 June 2014
Onion prices have increased in Bangladesh after India hiked export prices of the produce, which caters to a large portion of demand here.
According to traders, onion prices have risen by up to Tk 5 in one week.
The Indian commerce ministry on June 17 fixed the lowest export price of onion at $300 a tonne.
Indian onion was selling at Tk 25-28 and the local variety at Tk 32-35 in Bangladesh market at the time of the new price fixation.
But on Friday, the Indian onion sold at Tk 30-35 and Bangladeshi variety at Tk 35-40.
Commerce Minister Tofail Ahmed on Wednesday dismissed the fear of a price hike following India's new decision. "The stock of onion in the country is adequate," he had said.
He said onion prices would not rise during the month of Ramadan as businessmen pledged to keep them stable.
President of Shyambazar Agricultural Produces Wholesale Market Association Md Sayeed told bdnews24.com: "Import cost of onion has increased. Transport cost has also gone up.
"Moreover, quantity of the produce reaching the market has declined. That's why prices have risen a bit."
Prices of potato have also gone up. Per kg of the vegetable sold at Tk 24-25 on Friday against Tk 20-22 a week back.
Sayeed attributed this to a decline in supply of potato.
Prices of eggplant, cucumber, green chilli, garlic and coriander leaves also increased though the government imposed a ban on export of the produces in a move to keep their prices stable.