Onion prices go up as India slaps export ban

The prices of onion shot up by Tk 10-15 per kilogram in the city markets as neighbouring India has slapped a ban on its exports with effect from Monday.

Retail prices of onions increased to Tk 70-80 a kg until 8:00 pm on Monday from Tk 50- 70 a kg in the morning.

On the other hand, Indian onion prices shot up to Tk 42-47 a kg and local to Tk 52-57 a kg at wholesales like Shyambazar on the day until 8:00 pm, said traders.

They said the decision taken by India to stop export like that of September last year could make onion market volatile in Bangladesh.

India's Directorate General of Foreign Trade has issued a notification on September 14 (Monday) for prohibiting export of all kinds of onions except Bengalore Rose and Krishnapuram varieties.

The notification was applied from the day it was issued.

Shiliguri-based exporter Somnath Ghosh Dastider told the FE that his country has taken the decision to tackle price hike there.

He said retail prices already surged to 50-65 rupee a kg in various Indian states.

Our Rangpur Correspondent adds: Indian onion exporters have stopped exporting onion from Monday morning through Hilli land port in Dinajpur.

Nearly 150 trucks of onion were stuck up in Indian side, he said. Hilli Customs said they haven't got any official statement from the Indian authority in this regard.

Hilli and Kurigram-based importer Mohammad Yusuf told the FE that Indian exporters have stopped exporting the spice following a possible ban.

Import through Benapole in Jashore and Bhomra in Satkhira also halted on the day, said sources.

Narayan Chandra Saha, a Shyambazar-based trader in the city, said prices of both Indian and local varieties started increasing further from Monday evening.

He said imported and local onion witnessed Tk 7.0-9.0 a kg hike until 8:00 pm on the day.

Onions prices reached all-time high at Tk 300 per kg in the local market following an export ban on onion by Indian last year.

When contacted, commerce secretary Md. Jafar Uddin told the FE on Monday evening, "We are yet to be officially informed as to whether India has put restrictions on onion export."

Meanwhile, the National Board of Revenue (NBR) has ruled out the commerce ministry's request to waive 5.0 per cent import duty on onion. In a letter to the commerce secretary, the customs wing of the board said 5.0 per cent duty would have little impact on the onion prices at consumers' level.

The NBR imposed 5.0 per cent duty in the budget for the current fiscal year.