Onion price hike
Onion prices have gone up in Khulna market just after the India's imposition of 40 percent duty on its export which came into effect from Sunday (August 20). The prices of onion have increased by Tk 10-15 per kg in the local market just in a day. On Sunday, Indian onions were being sold at Tk 65-70 per kg, while local onions at Tk 90 per kg. But on Saturday, per kg of Indian and local variety onions were sold at Tk 55-60 and Tk 75 per kg respectively. Read: India imposes 40% duty on onion exports effective today Sujan and Kawsar, traders of Mylapota Sandhya Bazar in the town, said that there is no shortage of onion in the market. However, they are paying Tk 10-15 more for buying per kg of onion. As a result, onions have to be sold at a higher price, they added. On August 19, the Revenue Department of the Indian Finance Ministry imposed a 40 percent duty on onion export to check price hike. Read: Indian onions start arriving through land ports as import resumes Importers said earlier they paid no tax for importing onions from India. Due to the 40 percent duty, an extra Tk 15-19 per kg will have to be counted. An Indian gazette notification signed by Amreeta Titus, deputy secretary of the Revenue Department under the Finance Ministry, said the duty will remain effective till December 31 this year. Indian exporters said onion prices are soaring in the country and the government has imposed the duty to discourage exports. Read: Proper preservation of onions to end instability, crisis: Agriculture Minister Buyers said that the prices of onion have increased compared to the last few days. Onions may be stockpiled by unscrupulous traders on the pretext of import duty that may cause further rise in prices, they feared. Ibrahim Hossain, deputy director of the Khulna divisional office of the Directorate of Consumer Rights Protection, said that they are monitoring the market.
The Revenue Department of the Indian Finance Ministry has imposed a 40 percent duty on onion exports to Bangladesh effective today (August 20, 2023), causing a hike in the price of the item mainly used as spice in local markets. An Indian gazette notification signed by Amreeta Titus, deputy secretary of the Revenue Department under the Finance Ministry, said the duty will remain effective till December 31 this year. India imposed the duty for the first time. Importers of Hili Land Port said earlier they paid no tax for importing onions from India. Due to the 40 percent duty, an extra Tk 10 per kg will have to be counted. Read: Indian onions start reaching Satkhira, leading to prices easing down On the other hand, each kg of onion is being sold at Tk 50 since this morning. Per kg of onion was being sold at Tk 39-47 just a day back. They said Sunday is a weekly holiday in India and import of onion won’t be possible until the newly imposed duty is not paid, urging the Bangladesh government to look for alternative markets to import the item from. Read: Indian onions start arriving through land ports as import resumes Indian exporters said onion prices are soaring in the country and the government has imposed the duty to discourage exports. They suspected that the prices may be hiked next month as substantial amounts of onions rotted due to excessive heat. Read more: Govt to allow onion import from Monday: Agriculture Ministry
Expressing deep concern over the unusual price hike of onions following a sudden export ban by India, BNP policymakers have demanded the government take necessary steps to keep the prices of all essentials within the buying capacity of common people.
Amid the skyrocketing onion prices in the local market, consignments of Indian variety of the essential kitchen item have finally started entering Bangladesh through different land ports on Saturday.
As onion prices have soared again in the country due to its export ban by neighbouring India, Finance Minister AHM Mustafa Kamal says his ministry will consider the withdrawal of duty on its import to keep the local market stable. "We'll definitely consider the matter [duty withdrawal] as we did in the past," Finance Minister AHM Mustafa Kamal told reporters on Wednesday, responding to a question on withdrawal of duty on onion import. The Finance Minister was speaking at a virtual briefing session on the outcomes of two consecutive meetings of the Cabinet Committee on Economic Affairs Cabinet Committee on Public Purchase. He made the remarks when reporters drew his attention to Commerce Minister Tipu Munshi's call to the Finance Ministry to withdraw the existing duty on onion import against the backdrop of India's ban on export of the bulb to Bangladesh and other countries. The Indian ban on onion export to Bangladesh has triggered an unusual upward trend in its prices. The onion price shot to about Tk 100 from the normal price of Tk 30 in the local market. A bulk import of such an essential item usually comes from the neighbouring country. The Finance Minister said the government is very careful about the adequate supply of all essential commodities, not only about onions. "We, including the Prime Minister, don't expect any volatile situation of any essential commodities." Commerce Minister Commerce Minister Tipu Munshi on Wednesday said there is no need to panic over onion price as there is adequate stock of it. "Our country has a demand of 1 million tonnes of onion till next season. In contrast, we've about 600,000 tonnes. There is shortage of 400,000 tonnes," he said at a press briefing on onion stocks, supply and price situation at the secretariat. Minister Munshi said there will be a bit problem as onion import has been suddenly stopped from India. The government is trying to bring onion from other markets. "Onion will be brought from other countries, including Turkey, Holland in the next 30 days. Then there will be no more problem," he said. Munshi said unscrupulous traders have taken advantage of the fact as India has stopped exporting onions. Consumers are also buying more onions, which is creating panic. "Don't panic. We'll take action against dishonest traders," he said. Decision to import onion fromTurkey, Egypt The government has decided to import onion from multiple sources to ensure enough supply of the popular cooking ingredient in the local markets. In line with the decision, the government has already taken steps to import onions from Turkey and Egypt, the Ministry of Foreign Affairs said. The consignments are expected to reach Chittagong port early next month. India on Monday prohibited the export of all varieties of onion except in cut, sliced or powdered form.
The Commerce Ministry and Trading Corporation of Bangladesh (TCB) have taken a joint initiative to sell onions through online shops targeting middle-class consumers.
Bangladesh has shared its "deep concern" with India at the sudden ban on onion exports saying it undermines the discussions that took place in October last year and January this year.