In Bangladesh, the interim government's decision to lower tariffs on the import of potatoes and onions on September 5 has led to a decrease in the prices of these vegetables in local markets. According to a recent report by the Bangladesh Trade and Tariff Commission, potato prices have seen a reduction of 1.70 percent per kg, and imported onion prices have decreased by 11.63 percent. This price reduction occurs despite a rise in global prices for these commodities, attributed to the reduction in import tariffs.
The country has been experiencing high inflation, particularly in food prices. In August, food inflation was recorded at 11.36 percent. The prices for rice, eggs, sugar, fruits, edible and fuel oil remain elevated, largely due to their import-dependent nature. Market experts suggest that reducing import tariffs on more essentials could alleviate some of the price pressures faced by consumers.
On September 5, a statutory regulatory order was issued, lowering the duties on potatoes to 15 percent from 25 percent and eliminating a 3 percent regulatory duty. Similarly, a 5 percent regulatory duty on onion imports was withdrawn. Following these adjustments, the price of potatoes dropped to Tk 54-56 per kg, and imported onions to Tk 90-100 per kg in wholesale markets. Local onion varieties were priced at Tk 110-120 per kg, showing a decrease in prices across the board.
The Tariff Commission's analysis, incorporating data from the Reading Corporation of Bangladesh (TCB) and the Department of Agricultural Marketing (DAM), indicated a 1.79 percent decrease in potato prices, a 6.52 percent decrease in local onion varieties, and an 11.63 percent decrease in imported onions over the past month. This contrasts with the global market trends, where onion and potato prices have increased by 25.40 percent and 20-13 percent, respectively.
India, a significant source for Bangladesh's onion imports, had previously set a minimum export price and an export tariff to control domestic prices, leading Bangladeshi traders to seek alternative sources. However, with India's recent adjustments to its export policies, the cost of importing onions has decreased slightly.
Market experts have called for further tariff reductions on other essential goods to help mitigate high prices. The former president of the Consumer Association of Bangladesh, Golam Rahman, highlighted that reducing import duties could increase supply and lower prices, as seen with onions and potatoes. This strategy could provide relief to consumers facing high costs for essential items.
Source: Prothom Alo