Onion, potato prices still higher despite duty cut

YASIR WARDAD
The government initiative to remove duties on onion and potato imports was yet to give consumers relief as their prices are retailed almost at previous highs.
Local onion was retailing at Tk 110-130 and imported Indian at Tk 105-115 a kg while potato at Tk 60-65 a kg depending on quality.
Among the imported onions, Indian produce was major while presence of Chinese, Burmese, Pakistani and Turkish onions were still much lesser, according to market sources.
Md Bablu Rahman, proprietor of M/S Sotota Banijjaloy, a Hilli (Dinajpur)-based importer, said the company sought permit for 500 tonnes of onion import from India.
He said importers have been encouraged further for the duty cut of Tk 4.0-5.0 a kg (5.0 per cent).
He said the duty has been slashed just three days back and consumers would get the benefit from the entrance of new imports.
He said sourcing dollar is the critical for import as it now costs Tk 124-125 to source a single greenback.
Another importer of Bogura-based Shaurav Enterprise, said import cost is minimum US $772 a tonne from India following their minimum export price of $550 a tonne and 40 per cent duty.
He said import cost in BDT was Tk 102-104 a kg which might decline by Tk 4.0-5.0 a kg for the duty slash.
Md Abedur, partner of BH Trading, a Sonamoshjid (Chapainawabganj)-based importer, said his company has got permission to bring 2,000 tonnes of potato from India.

He said it was not possible to bring potato at above 28 per cent duty from India.
He said the government has slashed the duty to 15 per cent from 25 per cent earlier while regulatory duty of 3.0 per cent has also been withdrawn.
He said thanks to the duty cut, the minimum import cost would be Tk 45-46 a kg. But, it would take some more days to get imported potato, he said.
An official at the plant quarantine wing (PQW) of the agriculture ministry said traders have brought a large chunk of onion - 0.181 million in the last two months.
He said 18,000 tonnes have been imported just in the last 10 days. Most of the onion has been purchased from India, he said.
He said many importers have taken import permit (IPs) to bring the produce from Pakistan, Turkiye, China and Egypt; 6,000 to 7,000 tonnes of onion have been purchased from those countries so far.
However, asked, he said only 40 tonnes of potato could be imported in the last two months amid comparatively higher rates in India.
A total of 98,000 tonnes of potato was imported in the last financial year marking an all-time high, according PQW.
Hedayet Ali, a Shyambazar-based trader, told the FE that imports in a short time usually encourages traders to bring the produce from India, he said.
He said supply of both local and Indian onion varieties are now in good shape. There is no worry of shortage until October when stock of local onion will be in its last stage.
According to the agriculture ministry, the country expects 3.5 million tonnes of onion in the last financial year (FY'24).
Potato production remained 10.6 million tonnes, said the Bangladesh Bureau of Statistics.
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