Govt may allow onion imports if prices stay high: adviser

The government will allow onion imports if the prices of this widely consumed item do not come down to a desired level within this week, Commerce Adviser Sk. Bashir Uddin said today.

He made the remarks while briefing journalists on the current onion market situation at the commerce ministry office in Dhaka.

Retail prices of the popular item climbed by 53 percent to Tk 110-120 per kilogramme in Dhaka's markets today from Tk 70-80 per kg a week ago, according to Trading Corporation of Bangladesh data.

The adviser said the country has produced a bumper onion harvest this year and therefore there is no shortage — stocks are sufficient to serve the domestic market.

New onions will arrive in the market within the next two weeks, he added.

If the market does not stabilise within the next four to five days, the government will decide on allowing onion imports to cool down prices. So far, the ministry has received around 2,800 applications for onion imports.

The sudden rise in onion prices is "illogical," the adviser said. "Several factors might have contributed to the hike, such as the end of the local harvesting season, sudden heavy rains, and weight loss due to drying during storage," he explained.

The adviser did not directly confirm whether the price increase was caused by hoarding or a market syndicate.

Bashir Uddin also said he has no information about hoarding or any syndicate. "This seems to be a temporary disruption, and I expect the situation to normalise soon."

If even 10 percent of the 2,800 applications are approved, the market will be flooded with onions and local farmers will incur losses, he cautioned. "Therefore, we are monitoring the overall situation before making a decision," he added.

Commerce Secretary Mahbubur Rahman was also present at the briefing.