The falling price of onion at the news of its import from India proves that there is a syndicate active to manipulate price of the commodity and the government has failed to bust this syndicate. It had to import the produce from a different country to create an impact on its price in Bangladesh.
The price of onion began to increase gradually before this Eid-ul-Fitr when three kilograms of the indigenous variety of onion was available at Tk100 at the retail market. From then the price began to rise so much that when the Eid-ul-Azha was still a month away, the price of one kilogram of onion reached Taka 100. It is quite understandable that keeping in mind the extra demand of the produce, the market manipulators were hiking the price.
It is not that the manipulating businesspeople bought the locally produced onion from the farmers at a higher price, not at all. Last winter they hoarded onions to sell at much higher prices when it is off the season.
The government did not allow import of onion from India to encourage consumption of locally produced onion and for ensuring fair prices for domestic producers. But that was not so. Finally, it allowed import and when the imported onions started arriving in the country through Benapole and Bhomra land ports on Monday, the prices in Jashore and Satkhira markets fell by Tk12-30 per kg. At Khatunganj in Chattogram, the sale of locally-produced onions suddenly fell.
It is now expected that the price of onion will fall further once the Indian onion becomes available in the market. But the fact is the onion syndicate will remain ever active and import of onions as a way to stabilize the market price is not the permanent solution.
Still, in this crucial time of dollar crisis, import of onion or any other commodity for that matter is not the right thing to do when there is adequate domestic supply.
The government now must find out which business people were responsible for the current price hike. Unless this syndicate is busted, neither the farmers who produce onion nor Bangladesh’s economy as a whole will be economically benefited.
