The price of onion crossed Tk100 per Kg in the retail market of Dhaka on Monday after India imposed a 40 percent duty on onion export.
The prices of the local varieties of onion rose by Tk 18 to 20 per kg while imported hybrid onion prices also went up by Tk 15 to 18 per kg.
The correspondent talked to consumers of different areas in Dhaka, including Mogbazar, Malibag, Fakirerpool, Hatirpul, Rampura, and Karwan Bazar on Monday evening who said that they bought the local variety of onions for Tk 95 to Tk 105 per kg based on quality.
Nazrul Islam Bulbul, a resident of New Eskaton who bought 5 kgs of onion from Karwan Bazar for Tk 95 per kg on Monday afternoon.
Monjur Ahmed, a resident of Poribag, told this correspondent that he had to pay Tk 210 to take 2 kgs of onion on the day.
Rabeya Khatun, a resident of Rampura area, shared the same experience and said that she bought one kg of onion for Tk 98 on Monday.
Each kg of the imported Indian onion was being sold for Tk 85 to 90 on Monday, which cost only Tk 68 to 75 per kg on Saturday.
However, on 19 August, India announced to impose a 40 percent duty on onion export to increase its own storage. As a result, the price of onion has started increasing in the local markets sharply.
Agriculture Minister Dr Abdur Razzaque on Monday said that it is very sad to increase onion export duty by India without prior notice.
Bangladesh will search for an alternative market for onion along with continuing import from India.
People concerned regarding onion trading said that onion was imported from India at Tk 38 to 46 earlier. Now this cost will stand at Tk 53 to 65 per kg following the imposition of duty.
Meanwhile, traders have not yet started importing onions from India at higher prices. But they increased the prices in the local markets after hearing the news of imposing duty.
SM Nazer Hossain, Vice President of the Consumers Association of Bangladesh (CAB), told UNB that the price of onion has increased after the announcement of raising duty by India.
“With the news of the price hike in the international market, unscrupulous businessmen have increased the price in the domestic market before the high-priced product arrives in the country. It is the nature of the businessmen in our country,” he added.
Again, even if the price falls at some points, they do not want to cut the price arguing that the product has not yet arrived, said Hossain.