Govt plans to impose duty on onion import

REZAUL KARIM | Published: January 15, 2025 23:29:36

The government plans to impose tariff on onion import with an eye to protecting the interest of domestic farmers, sources said.
To this end, the agriculture ministry has written to the commerce ministry recently, suggesting taking further measures on the issue.
The commerce ministry is currently working on the issue. It is likely to ask the Bangladesh Trade and Tariff Commission for providing opinions, including suggestions.
The move has taken to control onion imports so that the farmers of the country can get fair prices of their products this peak harvest season, according to a high official at the commerce ministry.
Due to overheated onion market during the last couples of months in 2024, the governments lifted all kinds of duties to ease the onion imports so that supply and prices of such perishable items are sufficient and affordable in the market.
Importers had been enjoying zero-duty facility following two circulars issued in September and November 2024 with intent to stabilise soaring prices in local market.
However, the facility was supposed to end on January 15.
In local markets, domestic onions were sold at Tk 140-150 per kg in October and November last year.
Currently, onion prices have come down in kitchen markets due to its harvest season.
Onion is now being sold at between Tk 45 and Tk 55 per kg in local markets.
When contacted, a senior official said the agriculture ministry recommended imposing tariff reasonably on onion imports, aiming to ensure fair prices of the locally-produced onion.
He, however, said if the government is convinced regarding the issue, the National Board of Revenue (NBR) would impose required tariff in this connection.
So far, all traders have already opened LCs against the import permit (IP) for onion which was issued by agency concerned under the agriculture ministry.
There are different tolls, including tariff and non-tariff barriers, to control import of the key essential item, according to an official of the tariff commission.
Experts said onion prices may see a hike during the holy month of Ramadan. The government should consider the fasting month.
Local farmers have alleged that they are not getting fair prices of their products as the production costs are higher than selling prices.
According to the commerce ministry, the national demand for onions is around 2.6-2.7 million tonnes a year, with 75-80 per cent of this demand met by local production and the rest covered through imports, predominantly from India.
The Indian government has lowered the export price of onion. It has fixed $305 per tonne. It was $405 earlier.
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