Onion prices reduced after import okayed

Business Report :

To rein in the sudden surge in onion prices across the country, the government has allowed the import of 230 tonnes of onions from India through Dinajpur’s Hili land port. Officials and traders said this step was taken in line with the government’s strategy to prevent artificial price hikes of essential commodities and to ensure adequate supply in local markets.
According to the official notification, five selected importing companies have received clearance to bring in onions. Each company will be able to import 30 tonnes, totaling 230 tonnes in the first phase. Md. Yusuf Ali, Deputy Assistant Officer of the Plant Quarantine Department at Hili land port, confirmed the information on Sunday afternoon. He said, “To stabilize the onion market in the country, the government has officially allowed five importing companies to bring in 150 tonnes of onions through Hili land port. The importer companies can start importing onions from India today, Sunday.” He also assured that all necessary administrative and technical cooperation will be provided to ensure smooth imports.
The permission for imports comes at a time when onion prices had been rising steadily in the local market over the past few weeks. In Dinajpur and surrounding districts, onion prices shot up to Tk 75 per kg, creating concern among consumers. However, immediately after the news of import approval, prices began to fall. Md. Riazul Haque, a wholesale trader at the port, observed that within just two days of the announcement, prices dropped by Tk 10 per kg. “Onions that were sold at Tk 75 per kg over the last two days are now being sold at Tk 65 per kg today,” he noted.
Market insiders said that the declining prices are a direct result of traders’ anticipation of increased supply. With the government’s intervention, the cycle of speculation and hoarding that often drives onion prices upward may be disrupted. Earlier this year, Bangladesh witnessed several instances of volatile onion prices due to reduced supply from domestic production and disruptions in imports. In June and July, extreme heat and untimely rains affected local yields, prompting traders to increase prices. The situation worsened in early August when concerns grew that India might restrict onion exports as part of its domestic market stabilization policy, as it has done in previous years.