Dhaka, Oct. 8 - Onion prices have risen sharply in Bangladesh after India banned exports due to widespread flooding in its main growing areas, traders said on Monday.
Onions now sell at 48 taka per kg, 70 percent higher than a week ago, although the government says it has sufficient stocks.
"We have enough onions in store, and the government is trying to import more from other neighbouring countries," Commerce Ministry spokesman Faizul Haque said, adding Bangladesh could have done more to look for other options and keep markets stable if India had flagged its decision to ban exports from Oct. 1.
But one buyer at a Dhaka market said: "We don't see any reflection of the government claim in the markets. We are forced to pay a much higher price."
Bangladesh produced nearly 500,000 tonnes of onions this year, against annual demand of 1.2 million tonnes, officials said.
Prior to the ban, India had raised onion prices to $500 per tonne from $300, said an official at the state-run Trading Corporation of Bangladesh, after flooding hit onion fields in Gujarat state.
Bangladesh buys most of its onion needs from India, with imports also from Myanmar and Nepal, Faizul said.
Onion consumption increases during the Muslim fasting month of Ramadan as Bangladeshis cook spicy dishes to break the day-long fast.
Indian onion exports fell 37 percent in April-September, according to government data on Friday, as rising prices had triggered several increases in the Minimum Export Price (MEP) in a bid to calm local prices.
September exports of 40,490 tonnes were the lowest in two years. ($1=68.70 taka)