Govt lifts import duty on onion

Amid widespread uproar over the sudden increase in onion prices, the government on Sunday lifted import duty on one of the key kitchen items to help rein in its price spiral.
The duty exemption will remain effective until March next.
A press release issued by the ministry of finance (MoF) said the existing 5.0 per cent import duty on onion has been withdrawn at the directive of the prime minister.
Onion prices spiked in Bangladesh after India slapped a sudden ban on export of the item on Monday last, citing price hike in the local market as the reason. Excessive rainfall has affected the production of onion in the southern states of India.
Presently, a kilogramme of the local variety of onion is being sold between Tk 80 and Tk 100 while the imported  variety between Tk 65 and Tk 75 in the local market.
Last year, a similar ban on onion export by India pushed up the prices of onion to a record high in Bangladesh. It had shot up to Tk 300 per kilogram, creating a massive outcry.
The MoF release also said in the budget for the financial year 2020-21, the government imposed 5.0 per cent duty on onion import "to ensure rational price for the growers, encourage onion cultivation and lower import dependence".
Taking the present state of onion price into consideration, the existing duty has been withdrawn for the lean period, up to March 2020, it added.
Earlier on Wednesday last, finance minister AHM Mustafa Kamal told newsmen that withdrawal of import duty on onion will be considered.

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