Bangladeshi importers are fearing market instability after India declared it is hiking onion prices by $175 per tonne to $430, saying the news from across the border came when demands are high due to Ramadan.

Mangager of Ahmed Enterprise in Jessore, Tuhin Saha, told bdnews24.com, “Even when we were importing onions at $255 per tonne, the prices ranged between Tk 22-25 per kilogramme at the land port depending on quality.”

He added the hike would push up prices to Tk 30-35, which would destabilise the market further.“Currently, onion prices are already unstable and the rise could cause the market for local onions to become unstable.”

Milton Saha, an onion importer in Khulna, told bdnews24.com, “The decision by the Indian government to hike onion prices a second time will raise our import costs, which will affect the local market.Prices of onion rose at the end of last month ahead of the Ramadan.

Indian exporters are attributing the rise of onion prices declared by India’s National Agriculture Cooperative Marketing Federation on Friday to a fall in supply.

“There was a crisis for onions in India since last month. The arrival of fresh supply from southern India could not lower the prices,” Kartik Chakrabarty, general secretary of Petrapole Port Clearing and Forwarding Staff Welfare Association, told bdnews24.com.

“As a result, NAFED increased the price to decrease exports on the advice of the government to control prices in India.” He confirmed a fax instructing export of onions at the new price reached Petrapole LC Station from Kolkata on Sunday.

Source:bdnews24.com