Import of onions alone cannot ensure price stability

IN THE context of an unstable onion market, the government has recently started importing onions. The increased supply has, however, failed to contain the price. After months of suspension, about 2,280 tonnes of onions have entered Bangladesh through the land port of Satkhira since August 10 but have made little to no impact on the retail price of onions. Market sources at Shyambazar and Karwan Bazar in Dhaka and Khatunganj in Chattogram say that onions were selling for Tk 65–70 a kilogram on the wholesale market, down by Tk 2–3 a kilogram from the past week. This slight reduction has, however, not impacted retail prices as onions was retailed for Tk 80–85 a kilogram at Dhaka kitchen markets on August 21. Wholesalers say that high domestic demand, limited import and significant waste of the locally produced onions during harvest prevent retail prices from falling. They warn that prices are unlikely to decrease until new supplies arrive at the market. The import of onions was, ...