India withdraws MEP, slashes duty to 20pc

Costs of onion import from India are likely to decrease as the neighbouring country has withdrawn the minimum export price (MEP) as well as slashed the duty by half for the purpose.
The Indian government on Friday withdrew the MEP of $550 a tonne, which was imposed on May 2024.
The export duty of 40 per cent was also deducted to 20 per cent, reported Indian news outlet NDTV.
The report also said that in all India average price of onion was above 50 rupee (Tk 71) now.
According to Indian portals on farm commodities, the prices of onion at Lasalgaon wholesale market in Maharashtra were 45 rupee to 50 rupee (Tk 64-71) on Saturday.
Hamidur Rahman, an onion trader in Dhaka, said the decision has come at a time when the Indian domestic onion price has almost surpassed their MEP.

In many Indian states, onion was even selling at 70-75 rupee (Tk 100-106) a kg, he said.
He further said the decision to slash the export duty by half would help ease import costs to some extent.
Md Bablu Rahman, proprietor of M/S Sotota Banijjaloy, a Dinajpur-based importer, said Bangladesh government recently removed the 5.0-percent import duty and now India reduce export duty to 20 per cent.
The duty slashes both on the borders could help lessen prices. Import cost was minimum $770 a tonne from India amid the MEP and duties, he added.
Mr Rahman also said duty worth $100 a tonne would be minimised with the latest development in India.
If the current price of onion in Indian market prevails, import cost would reduce by Tk 8.0-10 a kg, he said.
However, onion is being retailed at Tk 110-130 a kg in Dhaka for last one month of which imported ones at Tk 105-110 and local spice at Tk 120-130 a kg.
The current onion price is above 50 per cent higher on an average than that of last year, according to the Bangladesh Trading Corporation of Bangladesh.
Bangladesh produces 2.6-3.0 million tonnes of onion annually against a demand for 3.0-3.5 million tonnes.
The country imported above 0.65 million tonnes of onion last financial year, mostly from India.
Import has also surpassed 0.125 million tonnes so far in the current financial year, according to the Plant Quarantine Wing under the agriculture ministry.
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