Onion imports at Hili land port in Dinajpur, Bangladesh, resumed on Tuesday after a four-day interruption caused by a software issue in Indian customs. The disruption was due to an update in the tariff regime by Indian customs, which reduced the export duty on onions from 40 percent to 20 percent at 4:45pm that day. This adjustment followed India's decision to eliminate its minimum export price for onions on Friday, allowing Bangladesh to procure the commodity at more favorable rates.
Following the completion of necessary import procedures and tariff payments, the import of onions from India commenced at Hili land port from 5:30pm on Tuesday. Mamunur Rashid, an onion trader at the port, noted that orders placed before the halt were delayed because the Indian customs could not apply the reduced tariffs promptly due to a server glitch. Rashid mentioned that the decreased tariff might not immediately affect onion prices in Bangladesh's local markets, as the cost of procurement from India remains high. However, he suggested that a future reduction in onion prices in India could lead to more substantial imports and potentially lower prices in Bangladesh.
Currently, imported onions are anticipated to be priced between Tk 80 and Tk 85 per kilogram. A visit to Bahadur Bazar in Dinajpur revealed that local onions were trading at Tk 120 to Tk 130 per kilogram, while Indian onions were available for Tk 90 to Tk 95 per kilogram, a decrease from Tk 110 the previous day. India had previously imposed a minimum export price on onions to curb exports and boost local supply, alongside announcing a temporary export ban due to production disruptions from floods. The ban was extended indefinitely in March before being lifted on May 4, with a 40 percent export duty imposed, impacting the supply and pricing of onions in Bangladesh.
Source: The Daily Star