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

Gonoshasthya Kendra founder Dr Zafrullah Chowdhury on Thursday said India should be given a strong message as it is “trying to disturb Bangladesh’s economy”.

Finance Minister AHM Mustafa Kamal has said his ministry will consider a proposal for the withdrawal of duty on onion import.

Commerce Minister Tipu Munshi on Wednesday said that there is no need to panic over onion price as there is adequate stock.

The government has decided to import onion from multiple sources to ensure enough supply of the popular cooking ingredient in the local markets.

Bangladesh has requested the Indian government to withdraw the ban imposed on onion export as soon as possible, keeping the import flow of onion from India uninterrupted.

The government of India on Monday prohibited the export of all varieties of onion except in cut, sliced or powdered form.

The Indian government is going to lift its ban on onion export on March 15, its Commerce and Industry Minister Piyush Goyal said Monday.