Potato, Onion Prices Drop As Supply Increases

The prices of both new and old potatoes have started to decrease in the market as the supply increases. At the same time, with the arrival of new onions in the market, the price of onions is also beginning to fall.

The potato market has been quite heated for the past month. To increase supply and control prices, the National Board of Revenue (NBR) reduced the 25% import duty on potatoes to 15% on September 5. Additionally, the 3% regulatory duty on potato imports was completely removed. 

However, the market was not stabilized, and prices continued to rise. The situation reached a point where Trade Advisor Sheikh Bashiruddin himself stated that the government had failed to control potato prices, adding that efforts were underway to ensure there were no future problems.

However, with the increase in the supply of new potatoes, imports, and market monitoring by various government agencies, the situation has started to change. As a result, potato prices have begun to decrease. Vendors report that the price of new potatoes has dropped from 120 Taka to 60 Taka. The surplus of new potatoes has also led to a decrease in the price of old potatoes, which now sell for 65-70 Taka per kilogram, down by 10 Taka.

Currently, at the wholesale level, new potatoes are being sold for 52-53 Taka per kilogram, and old potatoes are priced at 60 Taka. According to the Trading Corporation of Bangladesh (TCB), potato prices have decreased by 3.57% in the last month.

In the market, vendors like Rubel from Bikrampur Business House in Karwan Bazar say that new potatoes have flooded the market, and imports are also ongoing. As a result, both new and old potato prices are starting to decrease.

The onion market, which had been hot, has also seen some relief. Vendors say that the price of local onions (50 Taka per kilogram) has decreased, and with the increase in the supply of imported onions, the price of onions is falling. Additionally, new sliced onions have started appearing in the market.

Currently, the retail price of local onions has decreased by 10-15 Taka per kilogram, with local onions selling for 100-110 Taka per kilogram, new sliced onions at 70 Taka, and imported onions at 80 Taka. At the wholesale level, local onions are priced at 90-92 Taka, and Indian onions are sold for 70-72 Taka per kilogram.

According to TCB statistics, the price of local onions has decreased by 26.79%, and imported onions have fallen by 21.95% over the past month.

Wholesalers and importers say that increasing imports is essential to controlling the market. They claim that the price reduction is due to the increase in imports. Khalil from Minhaj Business House in Karwan Bazar explains that local onions are being sold for 90 Taka per kilogram and Indian onions for 70 Taka due to increased imports from India and other countries.

Earlier, to maintain affordable onion prices, the NBR had removed the existing 5% regulatory duty on imports on September 5. When this did not stabilize the market, on November 6, the NBR fully removed all duties and taxes on onion imports. This exemption will remain in place until January 15, 2025.

Consumers have expressed relief at the drop in the prices of both potatoes and onions. They believe that with increased imports and regular market monitoring, prices will continue to fall, benefiting the general public.