Prices of Indian onion have started to directly affect the onion prices in Bangladesh. The Indian press says that the price of onion in the market has increased by 50 percent in the last two weeks and will increase further.

The price of Indian onions a kg is now selling at around Tk 100 in the local kitchen market in Bangladesh. According to experts, Indian onion can now be considered as an alternative commodity in economic terms. If the price of substitute Indian onion increases, it is natural that the price of domestic onion will increase. Local traders are also expecting the prices of Indian onions to increase further .  

It is to be noted that local onions have been stored in March. Economists say that the price of the local onion prices will increase following the news of Indian onion price hike.

Onion which was sold at Tk 65 two days ago in the local market has now gone up to Tk 80. The date of Qurbani Eid has been announced on June 17. Many people think that before the Eid festival, the price of local onions will go up to 100 taka per kg.

Meanwhile, the Indian Economic Times newspaper says that onion prices have increased by 30 to 50 percent in the last two weeks due to reduced supply in the market. This increase in the price of onions in the country happened before Eid-ul-Azha.

According to the news outlet Economic Times, Indian businessmen are stockpiling onions in this situation. Their expectation is that the measures taken by the central government to control onion prices will be relaxed.

In Lasalgaon, Nashik, one of the biggest onion markets in Maharashtra, onion was sold at Rs 26 per kg at the wholesale rate on Monday. Last May 25 this onion was sold for Rs.17. The best quality onion fetches more than Rs 30 in the wholesale market, although this quality onion is sold in very small quantities.

Ajit Shah, president of the Horticulture Produce Exporters Association of India, told Economic Times, "One of the reasons for the rise in onion prices is that farmers and stockists are hoping that the government will probably withdraw the export duty." Based on this idea, they are stockpiling onions and hoping that the price will increase further.

Arif Hossain, a private employee of Motijheel area, said that as the prices of all things are increasing, our salary has not increased. A few days ago I bought this local  onion for Tk  65, and on Wednesday  it has to be bought for 80 taka. Indian onions are being sold at Tk 100 per kg in the market.

Abdul Majed, General Secretary of Shyambazar Wholesale Onion Association, told The Mirror Asia, "Due to the lack of supply of domestic onion, the price has increased due to the demand, and due to the high price of Indian onion, traders are importing Indian onion in a very limited scale. The price has mainly increased due to these two reasons.

Consumer Association of Bangladesh (CAB) president Gholam Rahman told The Mirror Asia that although the country has a large stock of onion, due to the increase in the price of Indian onion, the local syndicate is increasing the price in line with Indian onion. No one is watching.

He said, "I am disappointed with the whole issue of rising prices of daily commodities." No action by the government helps in bringing down the prices. Only the onion traders of this country are increasing the price.

Meanwhile, the Indian government has withdrawn the ban on onion export after being closed for almost six months. However, due to the imposition of 40 percent duty on exports, importers have stopped importing Indian onions.

The production target of Bangladesh's onion for the current financial year is 36 lakh metric tons. And the demand in the country is 28 to 30 lakh metric tons.  As a result, there is no shortage of onions, instead there is  an excess production of onions. The Department of Agriculture Extension has disclosed  such information itself. Still the onion market remains unstable throughout the year in the country.