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Skyrocketing onion price blamed on exorbitant transportation cost

October 31, 2020
in Uncategorized
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Most Bhutanese have grown used to having onion in their diets, and the soaring price is not deterring them from buying it. In Samtse town, a kilogram of onion is now sold at Nu 150. While consumers bear the brunt, vegetable vendors say exorbitant transportation cost have their hands tied.     

Vegetable vendors in Samtse bring in onions from the Food Corporation of Bhutan’s (FCB) warehouse in Phuentshogling. The current price of Nu 150 a kilo is Nu 40 more than the FCB’s prescribed price for Samtse district.

“When we load at the FCB in Phuentshogling, depending on the load, they charge variable transportation cost. Some charge us Nu 7,000 while some ask for Nu 6,000. Add on the loading and unloading charges, and we are left with no option here,” said Phub Gyem, a Vegetable Vendor in Samtse.

“Vehicles will not come from Phuentshogling without paying a minimum of Nu 4,500. Even then we can only bring about 40 sacks. That translate to about Nu 110 per sack. And we pay Nu 20 per sack to the loaders,” added Roshan Pradhan, also a Vegetable Vendor in Samtse.

Vendors also expressed disappointment at receiving inferior quality onions, which they say adds on to the retail price.

“We get rotten onions. Some sacks would be torn that leads to shortages as well. So, we have to adjust. If we don’t sell at Nu 140 or Nu 150 then we are left with no profit,” said Karma Tashi, a Vegetable Vendor in Samtse.

“About four to five KGs of onion would be rotten in a sack. When we have to throw away this many onions, it is hard for us to make up for the loss,” Roshan Pradhan added.

Phuentshogling apart, onions imported from the Samtse dry port also cost the same amount. Transportation cost is the culprit again.

“When we import it directly from the Samtse gate and when it reaches the dry port, we incur about Nu 116 per kilogram. And from the dry port till the town it’s just about one kilometre yet we pay Nu 3,500 as additional expenses. So, before its put on the retail store, the price has already reached about Nu 140. That is why we sell at Nu 150,” said  Gem Tshering, a Vegetable Vendor in Samtse Town.

The vegetable vendors say transportation rates should be fixed by the Government and monitored. They are also calling the FCB to drop onions to the warehouse in Samtse as an alternative.

Sherub Dorji

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