Onion import price might decline as India withdraws MEP, slashes duty to 20pc

Import costs of onions from India are likely to be reduced as the neighbouring country has withdrawn the minimum export price as well as slashed the duty for the purpose by half.

On Friday, the Indian government withdrew the MEP of US$550 a tonne, imposed in May 2024.

The export duty of 40 per cent was also deducted to 20 per cent, reported Indian news outlet NDTV.

The report also said all India average price of onion was above 50 rupees (Tk 71).

According to Indian portals on commodities, prices of onions at Lasalgaon Wholesale in Maharashtra were 45 rupees to 50 rupees (Tk 64-71) on Saturday.

Hamidur Rahman, an onion trader in Dhaka, said the decision has come at a time when the Indian domestic onion price has almost surpassed their MEP.

He said in many Indian states, onion was even selling at 70-75 rupees (Tk 100-106) per kg.

Rahman said the decision of slashing export duty by half would help ease import costs to some extent.

Onion is being retailed at Tk 110-130 per kg in Dhaka for the last one month.\

The current price is above 20 per cent higher than that of last year.

Bangladesh produces 2.6-3.0 million tonnes of onion annually against a demand for 3.0-3.5 million tonnes.

Bangladesh imported above 650,000 tonnes of onions last financial year, mostly from India.

Onion imports have surpassed by 120,000 tonnes so far in the current financial year, according to the agriculture ministry.

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