The government of Bangladesh has decided to allow import of onions starting today. This has triggered an alarm in the market, with merchants saying suppliers are seeking help to sell their products as quickly as possible, before prices drop.
Prices of the kitchen staple rose throughout May and reached Tk 80 per kg, twice as much the cost one month earlier. As the Commerce Ministry threatened to resume imports, the prices decreased slightly. The prices rose again to cross Tk 100 within a day as the Agriculture Ministry refused to allow import of onions, citing the local farmers’ interests and saying domestic production was enough to meet the demand.
Many middle-men then started hoarding onions instead of selling the produce bought from the farmers, with the hope of making extra profits through further price rises.
[ Tk 100 = €0.87 ]