Giant Agro Processing Company Limited has set up the first onion processing and storage centre in the country with an aim to contribute to a consistent supply of the commodity for consumers while reducing post-harvest losses.
Agriculture minister Abdus Shahid is expected to inaugurate the specialised onion processing and storage centre located at Bhaluka in Mymensingh on May 2.
The onion processing and storage centre has been set up as a part of Onion Impact Cluster project, where Bangladeshi and Dutch private sector companies are participating with support of the Dutch government, Giant Group chairman Feroz M Hassan told New Age on Tuesday.
He stated that the project aimed to bolster Bangladesh’s onion industry by implementing pioneering Dutch techniques and knowledge to enhance onion production and storage.
This endeavour seeks to foster local private sector growth, elevate farmers’ and entrepreneurs’ incomes within the onion sector and reduce dependency on onion imports, Feroz outlined.
Giant Agro Processing Company has set up the onion processing and storage centre with 400 tonnes’ capacity on a pilot basis.
‘If the technology proves effective, private sector businesses will invest in the sector,’ Feroz hoped.
He said that the country had been grappling with onion supply issues for the past few years, with post-harvest losses of the crop reaching nearly 30 per cent.
‘If the technology can reduce the post-harvest losses to 10 per cent, the country would be self-sufficient in onion production,’ the businessman mentioned.
He also said that despite having potential, private sectors were not making investment in processing and storage of agricultural products in the country due to a lack of supportive environment.
‘We do not have the required technology and banks are not interested in financing such long-term business. I will request the government to provide support and ensure low-cost term loan for setting up storage centres,’ Feroz said.
If the storage facility is developed in the country, the consistent supply would be ensured and consumers would get onion at lower prices compared to when onion is imported, he mentioned.
‘Giant Agro has got involved in this project for two reasons. Firstly, it is a natural expansion of its existing business. Secondly, it is a good initiative for the country, as both the farmers and consumers could benefit from a sustainable supply chain,’ Feroz explained.
Supply disruption and price disorder heavily took place on the country’s onion market since 2019 and the price of the commodity topped Tk 300 a kilogram in that year.
After that, Bangladesh’s onion market experienced frequent supply shortage and surge in price.
Although the harvest of onion just ended in mid-April in the country, the item retailed at Tk 70-80 a kilogram whereas the price was Tk 40-50 a kilogram same time last year.
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