Potato, onion prices rise in local market despite duty exemptions

Despite the removal of import duties, prices for potatoes and onions have not decreased in the local market; rather, they have increased. Although the government has taken various initiatives to stabilize the prices of essential commodities, the prices of potatoes and onions continue to rise. Compared to last week, prices have climbed even further. Over the past two weeks, the price of potatoes in the retail market in the capital has increased by 10 to 15 taka per kilogram. Onions, already sold at high prices, have seen an additional increase of up to 10 taka per kilogram.

To control the price of these items, the National Board of Revenue (NBR) completely withdrew all tariffs and duties on onion imports last Wednesday.

Earlier, in September, the NBR removed the regulatory duty on onion imports. Despite a large amount of onions entering the country from India and other nations due to this tariff relief, prices have not fallen but have instead risen. Traders claim that the cost of potatoes at the cold storage gate has increased, impacting retail prices. Moreover, due to a supply shortage of locally produced onions, prices for both domestic and imported onions have spiked.

On Thursday, November 7, visits to Mirpur, Rampura, Badda, and Mohakhali markets in the capital revealed that local onions were being sold at 150-160 taka per kilogram in retail, while imported onions were selling for 120-130 taka per kilogram. Potatoes were priced at 70-75 taka per kilogram. Additionally, due to supply shortages, the price of domestic garlic increased by 20 taka per kilogram, reaching 250-260 taka. Imported garlic is being sold at 240 taka per kilogram. Eggs are being sold at 150 taka per dozen, with chicken prices remaining high. Broiler chicken is being sold at 190 taka per kilogram, while Sonali chicken is priced between 300-320 taka per kilogram, depending on quality. Early winter vegetables are now available in the market, which has slightly reduced vegetable prices.

Despite the removal of import duties, prices for potatoes and onions have not decreased in the local market; rather, they have increased. Although the government has taken various initiatives to stabilize the prices of essential commodities, the prices of potatoes and onions continue to rise. Compared to last week, prices have climbed even further. Over the past two weeks, the price of potatoes in the retail market in the capital has increased by 10 to 15 taka per kilogram. Onions, already sold at high prices, have seen an additional increase of up to 10 taka per kilogram.

To control the price of these items, the National Board of Revenue (NBR) completely withdrew all tariffs and duties on onion imports last Wednesday.

Earlier, in September, the NBR removed the regulatory duty on onion imports. Despite a large amount of onions entering the country from India and other nations due to this tariff relief, prices have not fallen but have instead risen. Traders claim that the cost of potatoes at the cold storage gate has increased, impacting retail prices. Moreover, due to a supply shortage of locally produced onions, prices for both domestic and imported onions have spiked.

On Thursday, November 7, visits to Mirpur, Rampura, Badda, and Mohakhali markets in the capital revealed that local onions were being sold at 150-160 taka per kilogram in retail, while imported onions were selling for 120-130 taka per kilogram. Potatoes were priced at 70-75 taka per kilogram. Additionally, due to supply shortages, the price of domestic garlic increased by 20 taka per kilogram, reaching 250-260 taka. Imported garlic is being sold at 240 taka per kilogram. Eggs are being sold at 150 taka per dozen, with chicken prices remaining high. Broiler chicken is being sold at 190 taka per kilogram, while Sonali chicken is priced between 300-320 taka per kilogram, depending on quality. Early winter vegetables are now available in the market, which has slightly reduced vegetable prices.

Market analysts said similar to last year, the instability in the potato market is due to the manipulation by cold storage owners. They buy potatoes at low prices at the beginning of the season, hoard them, and later create an artificial shortage to drive up prices. This process is happening nationwide. This hoarding and artificial scarcity are primary causes of the increased prices of not only potatoes and onions but also several other essential commodities.