Onion import sans IP formality

In recent weeks, the price of onions has increased again. This week, a kilogram of onion was priced at Tk 60. It is said that Bangladesh has produced 2,955,000 metric tons of onions this season. However, our demand is estimated at 3,500,000 tons. That is why we have to import 800,000 tons. And most of the imported onions come from neighbouring India and Myanmar.
Just before Eid-ul-Fitr, onion was selling at Tk 25 per kg in Dhaka city. The local onion growers were getting just Tk 10 for one kg, which was less than their production cost. Taking this into cognizance, the Ministry of Agriculture asked the Ministry of Commerce not to issue import permit for onions. After Eid, the retail price of onions has shot up to Tk 45 to Tk 50 a kg as the government has halted import of the commodity since earlier this month without public announcement.
The government should withdraw import permit (IP) system for onion import. Imposition of an aggregate 10 per cent duty on onion import can be considered to protect local onion farmers. It will ensure enough onion supply and reasonable price for both consumers and local onion farmers. Therefore, I would like to request the Ministry of Commerce to make onion import free of IP formality and continue present import duty structure for attaining a balance between farmers' and consumers' interest.

Md Ashraf Hossain,
120 Bashabo, Dhaka-1214,
mah120cb@yahoo.com