Bid to import sugar, onion from India amid export ban

Amid India's ban on sugar and onion exports, Bangladesh has strengthened its efforts to secure a special permission from the neighbouring country to import the two essential commodities before the upcoming Ramadan.

Officials at the Ministry of Commerce (MoC) said Bangladesh sought the permission for importing 100,000 tonnes of sugar and 50,000 tonnes of onion, aimed at keeping the supply and prices stable during the holy month, when the demand for these items usually spikes in the country.

The MoC in a communication through the Ministry of Foreign Affairs on Sunday asked the Bangladesh High Commission in New Delhi to contact the Indian authorities concerned to get necessary permission.

According to the communication, State Minister for Commerce Ahasanul Islam Titu had telephone conservation with Indian Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution Affairs Piyush Goyal on January 24, requesting him for the special consideration.

Mr Goyal has assured Mr Titu of providing such permission, says the communication, a copy of which was obtained by the FE. It added that the state minister also requested to ensure as soon as possible the annual import quota earlier proposed by Bangladesh.

The export of sugar and onion from India is currently banned, but India recently assured Bangladesh of providing necessary permission so that it could import 50,000 tonnes of sugar and 20,000 tonnes of onion, said the officials.

At present, sugar has become both scarce and expensive in the local market, and traders are not selling it at the government-fixed rate, according to market sources.

Sugar still retails at Tk 140-145 per kg, according to the daily market review of the Trading Corporation of Bangladesh (TCB).

The demand for sugar increases to around 300,000 tonnes during Ramadan, according to official data, as compared to monthly average demand for 150,000 tonnes.

On the other hand, the annual demand for onion is more than 2.5 million tonnes, according to the MoC.

The prices of widely consumed onions are higher during this harvesting season. Local onions were at Tk 90-100 per kg on Sunday, while imported ones fetched Tk 100-120 per kg.

Experts said the widely consumed tube was still selling at exorbitant prices despite the taking of multiple steps to ease the volatile onion market-one of alternate spirals in prices of daily necessities.

They were surprised that the price of onion is unusual as harvesting of the perishable item is ongoing.

"We have taken initiatives to keep the prices stable throughout the year, especially upcoming fasting month," a high official at the MoC said at his secretariat office on Sunday.

He also said that necessary steps have been taken to stabilise the prices of some key essential items, including sugar, edible oil, onion, date and gram during Ramadan. The market situation will have to be kept under control during the holy month, he added.

The commerce ministry has already sought waiver of duties on import of different kitchen items including edible oil, sugar and dates aiming to keep sufficient supply and prices of items stable in the market. As per the request of the ministry, the National Board of Revenue (NBR) was working on it.

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