Onion prices fall as 52,000 tonnes were imported in a month

Bangladesh has imported over 52,000 tonnes of onions since the government's approval in December to stabilise supply and meet rising consumer demand.

Since December 7, the government has so far approved the import of 73,050 tonnes of onions, according to the data of the Department of Agricultural Extension (DAE).

The steady imports have led to a decrease in retail onion prices in the country, bringing some relief for consumers dealing with high inflation, which stood at 8.49 percent last month.

"All the onions imported so far have come from India," said Boni Amin Khan, additional deputy director for import at the plant quarantine wing of the DAE, which issues the phytosanitary certificates required for importing any plant into the country.

Last month, onion prices in the retail market surged past Tk 150 per kilogramme (kg) within a week. In response, the Ministry of Agriculture announced that only importers who had applied for import permits since August 1 would be eligible to import onions.

PRICES FALL AS SUPPLY INCREASES

Currently, imported onions are being sold at the retail level for Tk 65-Tk 72 per kg in different kitchen markets across Dhaka and Chattogram, according to the retailers.

For importers, including transportation and other ancillary expenses, the landed cost ranges between Tk 50 and Tk 52 per kg, they said.

Shahidul Alam, a retailer at Karwan Bazar, one of the largest kitchen markets in the capital, said newly imported onions were sold yesterday at Tk 65-Tk 70 per kg, compared to Tk 60-Tk 65 for early varieties.

The early varieties entered the market almost a month ago. Initially, one kg of those onions sold at Tk 130-Tk 150, and the price has gradually decreased since then, he said.

Meanwhile, Abdul Majed, general secretary of the Shyambazar Onion Traders' Association, a major onion-selling hub, said after the government granted import permission, increased supply in the market has lowered onion prices.

At the wholesale level, imported onions were sold at Tk 60 per kg yesterday, he mentioned, adding that the government is no longer granting new import permissions, causing onion prices in the market to start rising again.

Just two to three days ago, onions were sold at Tk 45-Tk 50 per kg in the wholesale market, he said, the current supply of early varieties in the market is not sufficient to meet the demand.

IMPORT BRINGS TK 32.51cr IN REVENUE

According to data from the National Board of Revenue, a total of 62,987 tonnes of onions worth Tk 240.11 crore were imported during the first six months of the current fiscal year.

Customs authorities collected Tk 32.51 crore in revenue from these imports. Of the total imported onions, 79 percent or 49,873 tonnes were imported in December alone.

The average import price of the onions stood at around Tk 38 per kg, while importers had to pay about Tk 5 per kg in duties, taking the cost to Tk 43 per kg. The landed cost rises to around Tk 50-Tk 52 per kg after adding all other costs, traders said.

As onions are a perishable commodity, around 3 percent to 4 percent of the consignments are damaged during transportation.

Moreover, the weight of onions also declines over time due to various factors, including moisture loss, said Ali Hossain, proprietor of Madina Traders, an importer at Chattogram's Khatunganj wholesale hub for essential commodities.

The DAE estimates last season's harvest at over 39 lakh tonnes, enough to meet domestic demand. However, it projects that an additional 6-7 lakh tonnes of imports will be needed to offset post-harvest losses.