Bangladesh seeks alternative to India for potato and onion imports
Bangladesh is looking for alternatives to import potatoes and onions instead of relying on a single source country. The government has identified some other countries besides India to maintain the supply system of these two products. The Bangladesh Trade and Tariff Commission (BTTC) submitted a report to the Ministry of Commerce last week.
The Ministry of Commerce held a meeting with importers, producers, wholesalers, the Ministry of Agriculture and other concerned parties on Thursday in this regard. It is learnt that more meetings will be held on this matter.
Currently, potatoes are imported only from India. Onions are mostly imported from India and Myanmar. However, onions are also imported from Pakistan, China and Turkey, although in smaller quantities.
The BTTC report says that currently, potatoes and onions are mostly imported from India. In this situation, emphasis is being placed on alternative countries for imports. In this case, the BTTC has mentioned four countries for potato imports. These are Germany, Egypt, China and Spain. For onions, the BTTC has mentioned China, Pakistan and Turkey.
The report highlights some reasons why other sources are being sought for these two products besides India. It says that currently, there is an upward trend in the prices of onions and potatoes in the local market of India. India takes various steps to discourage exports to stabilize the local market. Therefore, the BTTC feels that Bangladeshi importers can be encouraged from alternative sources.
The BTTC report highlights the price of onions and potatoes in India. On December 2, the price of onions in India was US$564 per ton. A month ago, it was US$510 per ton. A year ago, the price was $244. Compared to a month ago, onion prices in India have increased by 10.59 percent. And compared to a year ago, it has increased by 131 percent.
On December 2, the price of potatoes in India was $355 per ton, which was $329 a month ago. A year ago, the price of potatoes was $266. Potato prices in India have increased by about 7.5 percent in a month. It has increased by 34 percent in a year.
The report did not mention anything about the retail market prices of the two products in India. However, it is said about the domestic market prices of these two products, on December 3, each kilogram of potatoes was bought and sold at a price of 75 to 80 taka per kg depending on the quality. Potato prices have increased by 24 percent in a month. And the prices have increased by 78 percent in a year.
The price of domestic onions has increased by 2 percent compared to a year ago. Although it has decreased by 12 percent in the last month. Currently, it is being sold at 115 to 130 taka per kg.
Being a nearby country, importing potatoes and onions from India or Myanmar reduces the cost and saves time.
According to the BTCC report, the annual demand for onions in Bangladesh is 2.6 to 2.8 million tons. In the 2023-24 fiscal year, onion production was 3.9 million tons. However, excluding 30 percent storage losses and seeds, the supply was a little more than 2.7 million tons.
However, traders believe that the production and demand calculations are not correct. For this reason, even after good production in the country, at least 30 percent of the onion demand has to be imported.
According to the BTCC report, 9.5 million tons of onions were imported from India, Pakistan, Turkey, Egypt, China and Myanmar in the 2023-24 fiscal year.
The annual demand for potatoes in the country is 8.5 to 9 million tons. Local production is 10.6 million tons. The supply excluding 25 percent storage losses and seeds is 7.9 million tons. 150,000 tons of potatoes were imported from India in the 2023-24 fiscal year.
Selim Raihan, executive director of the South Asian Network on Economic Modeling (SANEM), a research institute on alternative sources of potato and onion imports, told Prothom Alo on his mobile phone yesterday, “It is necessary to find alternative source countries for India, not only for potatoes and onions, but also for other daily commodities. I applaud the BTCC’s initiative in this regard. However, another important thing is to find out in advance which products are in short supply at any time of the year and take action accordingly as soon as possible.”
Source: The Prothom Alo, 08 December 2024, 11:07
