The initiative by the government to remove duties on onion and potato imports has not yet resulted in lower retail prices for these commodities in Bangladesh. Local onions are being sold for Tk 110-130 per kg, and imported onions, primarily from India, range from Tk 105-115 per kg. Potatoes are retailing at Tk 60-65 per kg, based on quality. The market has seen a lesser presence of onions from China, Burma, Pakistan, and Turkey compared to Indian imports.
Md Bablu Rahman, a Hilli (Dinajpur)-based importer, mentioned that his firm has applied for a permit to import 500 tonnes of onions from India, motivated by a duty reduction of Tk 4.0-5.0 per kg (5.0 percent). The duty cut, enacted three days ago, is expected to benefit consumers with the arrival of new imports, although sourcing dollars for import remains a challenge at Tk 124-125 per dollar.
Import costs from India stand at a minimum of US $772 per tonne, considering India's minimum export price of $550 per tonne and a 40 percent duty, which could decrease by Tk 4.0-5.0 per kg due to the duty cut, according to an importer from Bogura-based Shaurav Enterprise.
Md Abedur, a partner at BH Trading from Sonamoshjid (Chapainawabganj), highlighted that his company received permission to import 2,000 tonnes of potatoes from India, benefiting from the duty reduction to 15 percent from 25 percent, with an additional regulatory duty of 3.0 percent also being withdrawn.
According to an official at the plant quarantine wing (PQW) of the agriculture ministry, a significant quantity of onion, 0.181 million tonnes, has been imported over the last two months, with 18,000 tonnes imported in the last ten days alone, mostly from India. Import permits (IPs) have also been issued for onions from Pakistan, Turkey, China, and Egypt, totaling 6,000 to 7,000 tonnes. However, only 40 tonnes of potatoes have been imported in the last two months due to higher rates in India, despite a record 98,000 tonnes being imported in the last financial year.
Hedayet Ali, a trader based in Shyambazar, noted that the short-term import strategy typically favors Indian produce, ensuring a steady supply of both local and Indian onion varieties. The agriculture ministry projects an onion production of 3.5 million tonnes and a potato output of 10.6 million tonnes for the last financial year (FY'24).
Source: The Financial Express