In the face of turbulent onion market, Commerce Minister Tipu Munshi on Thursday (September 10) said the government will import a record amount of onion this year as the price of onion is spiking by the day in Indian market also.
“Initiative has been taken to import a record amount of onion this year. We see prices of onion also increasing in India. We wrote to the NBR (National Board of Revenue) to drop 5 percent VAT from onion import and hope that it will be withdrawn,” said the minister.
He made the comments replying to a query of journalists after meeting with visiting Hungarian foreign minister at his chamber in the secretariat.
"Onion price has increased in the market slightly as flood disrupted the supply chain. We are trying hard to control the onion price. TCB (Trading Corporation of Bangladesh) will start selling onion from September 13 at a fair price in the open market,” he said.
“Several teams from the ministry will go to Benapole and Hilly land port to inspect the situation of import. We are monitoring the situation. Let's see," the minister added.
“We already invited tender for importing onion from Turkey through TCB,” the minister further said.
Outlining the difference between last year and this year’s onion crisis, the commerce minister said, "Last year India banned onion export but this year it hasn’t. Some traders took the opportunity of the onion export ban by India as onion was selling at 150 rupees in India. We suffered a lot because of the ban but created a new window on importing onion from other countries."
Meanwhile, a number of onion traders told The Business Post onion price started to hike in the market from September 4 and since then has been on an upward trend.
Local variety onion was selling at 40-45 taka before last Friday. From Friday, the price jumped by 10 taka per kilogram which is now being sold at 60 taka.
Last year, onion price hit the roof selling at 300 taka per kg. Prices began to see a rise in September as India first hiked onion price and then stopped exporting which ended up creating an anarchic situation in the market.
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