To a new week and to the end of August, we see that
commodity prices, particularly onion, with far better times, as it was doing
quite well for consumers at Tk 50-55 per kg, in the third week of the month. Flood
waters in the country has significantly affected staple food prices as they
continue to soar, but onion had impacts from decisions outside the country, an
Indian export price hike. Due to mostly panic hike here in Bangladesh, imported
onion prices were Tk 65-70 per kg on Friday, which was even higher midweek.
The Indian minimum export price hike last week to US $700
per tonne, almost double of earlier rates to protect availability in Indian market,
saw Bangladeshi markets prices rise as high as Tk 80-85 per kg for imported and
Tk 85-90 for local onion varieties. Although, it may take 3 weeks for the
onions imported to reach Bangladeshi market, the news changes prices overnight.
However, the tension will ease, with other sources of diversified imports,
specially from Pakistan. To aid this process further, the central bank has
capped banks of their lending rate to importers to 11% from the range processed
earlier of 11-17%, which will stay for a considerable period till the end of
the year.
With Eid just about a month away, food prices must be
curtailed with more favorable decisions for the common consumer. The decision
by the Bangladesh Bank for the onion import lending rate may be found here.
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