Onion prices skyrocket in Bangladesh after India\`s export ban

Onion prices in Bangladesh jumped by more than 50% on Tuesday_ following a ban on exports by largest supplier India after its crop was damaged and harvesting delayed by excessive rain. The surprise move_ which took immediate effect on Monday_ could help cut prices in India_ but boost prices in Asian nations such as Malaysia_ Nepal and Sri Lanka_ apart from Bangladesh_ since they rely on Indian shipments. "Many trucks are standing on the Indian side with onions_" said Bangladeshi trader Saiful Islam. "Now we are wondering what will happen to those supplies." India is the biggest supplier of onions to neighbouring Bangladesh_ which buys a yearly average of more than 350_000 tonnes. Onion prices in Bangladesh had jumped to a record 250 taka in 2019 after a similar Indian ban forced the government to fly in onions. Now_ Bangladesh is turning to other countries for supplies_ Commerce Secretary Mohammad Jafar Uddin said. "Our target is to import onions in the shortest possible time_" he added. "The government is importing 100_000 tonnes of onions from Turkey and other countries." Dhaka sparked a rush by many poor people this week_ when it offered onions at a subsidised rate of 30 taka a kilo_ although some were left empty-handed on Tuesday_ when supplies ran out. In India_ prices have tripled in a month to 30 rupees a kg as the summer-sown onion crop in the southern states of Karnataka and Andhra Pradesh was damaged by excessive rainfall_ traders said. India's key onion-producing states have received as much as 41% more rainfall than normal since the monsoon season began on June 1. Supplies from the new crop have been delayed by nearly a month_" said Ajit Shah_ president of the Mumbai-based Onion Exporters' Association. Prices could remain firm in the short term.