The government has withdrawn 5 percent duty on onion import in an effort to cool down the overheated local market following its export ban by India.
The decision has been taken as per a directive of Prime Minister Sheikh Hasina, said a Finance Ministry handout on Sunday.
The official release says this decision will remain effective until March 31, 2021.
Earlier, the government had imposed a 5 percent duty on onion import in the current fiscal year (FY20-21) to ensure fair prices for local onion farmers, encourage them to grow more and more onion and thus reduce dependence on its import.
On Wednesday, Finance Minister AHM Mustafa Kamal said his ministry will consider a proposal for the withdrawal of duty on onion import.
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The ban by India on onion export to Bangladesh has triggered an unusual uptrend in its prices in the local markets as it shot to about Tk 100 from the normal price of Tk 30.
A bulk import of such an essential item usually comes from the neighbouring country.