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The Bangladesh Trade and Tariff Commission (BTTC) has recommended allowing onion imports to control the rising prices in the local market.
Given the increase in onion prices, import permission should be granted immediately, the commission noted.
According to the BTTC, onion prices typically rise between October and December each year.
In a letter forwarded to the secretaries of commerce and agriculture on Thursday, the commission suggested quick approval of limited onion imports after reviewing the recent supply situation.
As of Saturday evening, onions were selling for Tk 115-120 per kg in the city. Data from the Trading Corporation of Bangladesh (TCB) showed a 54 per cent surge in onion prices within just one week.
BTTC Chairman Dr Moinul Khan told the FE that middlemen are creating an artificial crisis to destabilise the market.
"At this time of year, onions should sell for around Tk 90 per kg, but now they're over Tk 115. In neighbouring countries, the same onions cost about Tk 30 per kg. So, we've recommended allowing limited imports to ease the market," he said.
India is the primary source of Bangladesh's onion imports, although onions are also imported from Turkey, Pakistan, Myanmar, China, and Egypt.
The Tariff Commission's report indicated that it is the middlemen, not the farmers, are benefiting from the high prices.
Allowing imports would reduce middlemen's control over the market, helping consumers buy onions at more reasonable prices.
In the last fiscal year, Bangladesh produced about 4.45 million tonnes of onions. However, due to storage issues and wastage, only around 3.3 million tonnes reached the market.
The report also noted that Bangladesh imported about 0.483 million tonnes of onions last fiscal year, mostly from India.
Currently, an import duty of 10 per cent is applied to onions.
The Commission said that this duty is justifiable, given the lower global price of $196 per tonne.
Despite the import duty, local traders could sell imported onions for less than Tk 50 per kg, according to the BTTC.
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