The Bangladesh government has stopped issuing new permits for onion imports from India through the Hili land port, citing the interests of domestic farmers. Imports approved under earlier permits will continue until 30 January, officials said.
Authorities confirmed that no new import permits have been issued since Monday morning, although shipments continue through Hili and other land ports under previous approvals. On Monday, 344 tons of onions entered through Hili land port in 12 trucks.
Importer Mobarak Hossain said imports had earlier been permitted to curb rising domestic prices. After a three-month halt, imports resumed from 7 December through several land ports, including Hili. As supply increased, prices declined and stabilised at around Tk 40 to Tk 50 per kg (US$0.36–0.45). "Now that new import permits have been stopped again, there is a risk of renewed instability in the market," he said, adding that prices could rise to Tk 80 to Tk 85 per kg (US$0.73–0.77). He noted port prices had already increased by about Tk 2 per kg (US$0.02).
Deputy Assistant Quarantine Officer Yusuf Ali said imports on Monday were made under previously issued permits. "No new import permits have been issued since Monday morning," he said, adding that higher authorities had confirmed no fresh approvals.
Since December, Bangladesh has imported more than 52,000 tons of onions following government approval to stabilise supply. Department of Agricultural Extension data shows total approvals of 73,050 tons since 7 December. All imports have come from India, according to Boni Amin Khan, additional deputy director for import at the DAE plant quarantine wing.
At the retail level, imported onions are currently sold at Tk 65 to Tk 72 per kg (US$0.59–0.65) in markets across Dhaka and Chattogram. Landed costs for importers range between Tk 50 and Tk 52 per kg (US$0.45–0.47). Last month, retail prices had exceeded Tk 150 per kg (US$1.36) before import approvals were granted.
Wholesale markets have started to react to the halt in new permits. Abdul Majed of the Shyambazar Onion Traders' Association said imported onions were sold at Tk 60 per kg (US$0.54), compared with Tk 45 to Tk 50 per kg (US$0.41–0.45) two to three days earlier, noting that early varieties alone do not meet demand.
National Board of Revenue data shows 62,987 tons of onions worth Tk 240.11 crore (US$218.28 million) were imported in the first six months of the fiscal year, generating Tk 32.51 crore (US$29.53 million) in revenue. Of this, 79 per cent arrived in December. Average import prices were around Tk 38 per kg (US$0.34), with duties of about Tk 5 per kg (US$0.05).
The DAE estimates last season's domestic harvest at over 3.9 million tons and projects additional imports of 600,000 to 700,000 tons to offset post-harvest losses.
Source 1: DhakaTribune
Source 2: The Daily Star