Onion prices in Bangladesh are unlikely to come down unless prices fall in India with a bumper production. What can we do to reduce the onion price in BD? Is there a role of the government? Onion prices surge in Bangladesh on floods, lower Indian supplyRuma Paul, Rajendra Jadhav, 24 JULY, 2019, REUTERSDHAKA/MUMBAI (Reuters) - Onion prices in Bangladesh have doubled over thepast two weeks after floods ravaged the crop and as imports from top supplier Indiabecame expensive after New Delhi withdrew incentives for overseas sales, industryofficials told Reuters.A man works at an onion wholesale market in the Kawran Bazar in Dhakaa,Bangladesh, July 24, 2019. REUTERS/Mohammad Ponir HossainOnions are used as the base for traditional dishes across Asia such as biryani inPakistan and India, belacan in Malaysia and fish curry in Bangladesh.Prices in Bangladesh doubled to 50 taka ($0.59) per kg because of floods andtraders say they could rise further ahead of the Eid-ul-Adha festival in August,when demand usually goes up for the vegetable."The upward trend due to supply shortage could continue over the next fewmonths," said Dhaka-based trader Hazi Shahid, adding the country has to raiseimports from India to calm prices.Severe flooding has killed at least 61 people, displaced nearly 800,000 andinundated thousands of homes across one-third of Bangladesh, governmentofficials said on Tuesday, after two weeks of heavy monsoon rains. The price rise has become a headache for the government of Bangladesh PrimeMinister Sheikh Hasina, which may plan sales of subsidized onions through thestate-run Trading Corporation of Bangladesh (TCB)."The price hike is like a nightmare for me. If prices of onions don't come downsoon, we’ll start selling in the open markets through the TCB," Commerce MinisterTipu Munshi said.Indian supplies have fallen after New Delhi discouraged exports.India withdrew 10% export incentives on onion in June after the prices of the bulbjumped 47% in a month in the local market due to dwindling supplies.As the subsidy has been withdrawn, Indian exporters have to charge more foroverseas sales, said Ajit Shah, president of the Mumbai-based Onion Exporters'Association.Even in India supplies are limited and the planting of summer-sown crops has beendelayed in some areas due to low rainfall, Shah said.India's monsoon rains to date have been 19% below average since the season beganon June 1, according to the India Meteorological Department.India exported 2.2 million tonnes of fresh onions in the 2018/19 fiscal year endedon March 30.During the same time, Bangladesh imported 578,111 tonnes of onions from India,according to data compiled by India's Agricultural and Processed Food ProductsExport Development Authority.Onion prices in Bangladesh are unlikely to come down unless prices fall in Indiawith a bumper production, said an exporter based in Kolkata, adding, however, thatthe "Indian crop is not looking great due to uneven distribution of monsoon rains."

Law of demand defines an inverse relationship between the price of the good and the quantity of…

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Onion prices in Bangladesh are unlikely to come down unless prices fall in India with a bumper production. What can we do to reduce the onion price in BD? Is there a role of the government?

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Question

Onion prices in Bangladesh are unlikely to come down unless prices fall in India with a bumper production. What can we do to reduce the onion price in BD? Is there a role of the government?

Onion prices surge in Bangladesh on floods, lower Indian supply
Ruma Paul, Rajendra Jadhav, 24 JULY, 2019, REUTERS
DHAKA/MUMBAI (Reuters) - Onion prices in Bangladesh have doubled over the
past two weeks after floods ravaged the crop and as imports from top supplier India
became expensive after New Delhi withdrew incentives for overseas sales, industry
officials told Reuters.
A man works at an onion wholesale market in the Kawran Bazar in Dhakaa,
Bangladesh, July 24, 2019. REUTERS/Mohammad Ponir Hossain
Onions are used as the base for traditional dishes across Asia such as biryani in
Pakistan and India, belacan in Malaysia and fish curry in Bangladesh.
Prices in Bangladesh doubled to 50 taka ($0.59) per kg because of floods and
traders say they could rise further ahead of the Eid-ul-Adha festival in August,
when demand usually goes up for the vegetable.
"The upward trend due to supply shortage could continue over the next few
months," said Dhaka-based trader Hazi Shahid, adding the country has to raise
imports from India to calm prices.
Severe flooding has killed at least 61 people, displaced nearly 800,000 and
inundated thousands of homes across one-third of Bangladesh, government
officials said on Tuesday, after two weeks of heavy monsoon rains.

The price rise has become a headache for the government of Bangladesh Prime
Minister Sheikh Hasina, which may plan sales of subsidized onions through the
state-run Trading Corporation of Bangladesh (TCB).
"The price hike is like a nightmare for me. If prices of onions don't come down
soon, we’ll start selling in the open markets through the TCB," Commerce Minister
Tipu Munshi said.
Indian supplies have fallen after New Delhi discouraged exports.
India withdrew 10% export incentives on onion in June after the prices of the bulb
jumped 47% in a month in the local market due to dwindling supplies.
As the subsidy has been withdrawn, Indian exporters have to charge more for
overseas sales, said Ajit Shah, president of the Mumbai-based Onion Exporters'
Association.
Even in India supplies are limited and the planting of summer-sown crops has been
delayed in some areas due to low rainfall, Shah said.
India's monsoon rains to date have been 19% below average since the season began
on June 1, according to the India Meteorological Department.
India exported 2.2 million tonnes of fresh onions in the 2018/19 fiscal year ended
on March 30.
During the same time, Bangladesh imported 578,111 tonnes of onions from India,
according to data compiled by India's Agricultural and Processed Food Products
Export Development Authority.
Onion prices in Bangladesh are unlikely to come down unless prices fall in India
with a bumper production, said an exporter based in Kolkata, adding, however, that
the "Indian crop is not looking great due to uneven distribution of monsoon rains."

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