The government has decided to allow the import of onions from 9 other countries in addition to India.
The development comes after the Indian government on 19 August imposed a 40% export duty on onions, with immediate effect, up to 31 December in an attempt to dampen local prices.
Bangladesh can now import 2,400 tons of onions from China, 3,910 tons from Egypt, 11,820 tons from Pakistan, 1,100 tons from Qatar, 2,110 tons from Turkey, 200 tons from Myanmar, 33 tons from Thailand, 4 tons from Netherlands and 3 tons from the UAE, according to a statement by the Ministry of Agriculture.
Import duty withdrawal suggested to cool down overheated onion market
The current price of local onions is Tk90-100 per kg, and the imported ones cost Tk75-80 per kg.
So far, 3 lakh 79 thousand tons of onions have arrived in the country since being granted permission to import 13 lakh 73 thousand tons on 5 June this year.
Earlier on 21 August, the Bangladesh Trade and Tariff Commission recommended the withdrawal of the existing 10% duty on the import of onions to cool down the market heated up by India’s export restrictions.
According to traders and consumers, the price of the essential kitchen ingredient has shot up by Tk15 per kg to Tk100 in a span of just two days.
India agrees to import quota of 7 vital food commodities, including rice and wheat
After India’s 40% export duty was imposed, the commission requested the National Board of Revenue (NBR) and the commerce secretary to take necessary measures regarding duty reduction.
At present, onion importers have to pay 5% customs duty and 5% advance income tax (AIT). The Tariff Commission has recommended withdrawing the duty till 31 December.
The commerce ministry was also advised to emphasise the import of onions from alternative countries.
Previously, onions were imported from various countries such as Turkey, Egypt, Pakistan and Myanmar to resolve the instability in the onion market.
