Amid a significant appreciation of the US dollar and the imposition of export duties by India, traders in Bangladesh have shown reluctance to import onions. This situation has led to an increase in the domestic price of onions as local traders capitalize on the reduced imports. The price per kilogram of onions rose from Tk 70-75 to Tk 80-85 over a weekend. Data from the Department of Agricultural Marketing (DAM) and the Trading Corporation of Bangladesh (TCB) indicate a 23-28 percent price increase within a month, coinciding with the peak harvest and primary trading period. Despite India lifting its export ban to some countries, including Bangladesh, it introduced a 40-percent export duty and set a minimum export price (MEP) of $550 a tonne to stabilize its domestic market.
A Dinajpur-based importer noted that the combined effect of the MEP and export duties raised the minimum price to $770 a tonne. Additionally, the appreciation of the US dollar further complicates the cost of importing onions. The importer estimated that the cost per kilogram could range between Tk 91-99, considering the current exchange rates. Consequently, the private sector has opted out of importing onions from India for the time being. The Bangladesh government had previously requested India to allow the export of 50,000 tonnes of onions. In response, India supplied 1,650 tonnes of onions to Bangladesh under a government-to-government agreement. This supply was distributed by the TCB at a subsidized rate.
[ Tk 100 = €0.85 ]
Source: thefinancialexpress.com.bd