The Ministry of Commerce on Tuesday directed the state-owned Trading Corporation of Bangladesh (TCB) to import onions so that people can buy the vegetable at reasonable prices.
The ministry also called on private companies to increase its imports. Earlier, Bangladesh Trade and Tariff Commission (BTTC) sent a letter to the National Board of Revenue to lift import tariffs on onion until December 31 this year as its prices went up in the domestic market after India slapped export duty on the item.
According to the letter, 5 per cent duty and 5 per cent advance income tax on onion import can be waived till December 31 to stabilise its supply and price in the local market.
However, the price of onions has increased in the local market by Tk 15-20 per kilogramme (kg) after India imposed 40 per cent export duty on August 19, our correspondent from Chattogram said.
At Khatunganj, the largest wholesale market of consumer goods in the country, onion was sold at Tk 45-Tk 48 per kg last week which is now selling at Tk 60-Tk 62. At retail level, onions are being sold at Tk 70 per kg or above.
Uttam Kumar Shah, owner of M/s Bengal Trades at Khatunganj, told The Business Post, “The price of onion has increased by Tk 12-15 in the wholesale market in a week.”
Last week it was sold at Tk 47-Tk 50, depending on the quality. At Khatunganj, onions were being sold at Tk 58-Tk 62 per kg for the last two days. “The supply of onion has decreased in two-three days. As supply is low, the price has increased.”
SM Nazer Hossain, vice president of Consumers Association of Bangladesh (CAB), said onion prices are rising due to supply shortage. Market manipulation by dishonest traders, dealers and importers may remain behind the price hike.
“Unscrupulous traders are always opportunists. The impact of India’s export duty is not expected to hit the market so soon.”
There are thousands of tonnes of imported onions in traders' warehouses. When the administration conducts drives, they present themselves as commission agents. And when the prices drop in the market, they claim that they have suffered loss, he added.
“But they are involved in manipulation,” Nazer said, adding that there is no alternative but to step up market monitoring to control prices.
Traders say that the annual demand for onion in the country is about 35 lakh tonnes, mostly imported from India.
Our Correspondent from Dinajpur said that 1,791 tonnes of onions were imported by 59 Indian trucks on Monday. But onion prices have increased by Tk 15-Tk 20 per kg.
