Tariff commission recommends zero duty on onion imports as prices skyrocket

The Bangladesh Trade and Tariff Commission (BTTC) has recommended to the National Board of Revenue (NBR) that the existing 5.0 per cent customs duty on onions be withdrawn.

This proposal aims to stabilize soaring prices in the local market, according to sources from the commerce ministry.

In local markets, domestic onions are selling for Tk 140-150 per kg, while imported onions are retailing for Tk 120-130 per kg—a Tk 20-30 per kg surge over the past one and a half years.

According to the Trading Corporation of Bangladesh (TCB), prices for domestic onions have increased by 30.23 per cent, while imported onions have risen by 8.0 per cent during the same period.

The BTTC report attributes the price hikes to several factors, including low production in India, increased import costs due to a 20 per cent export duty imposed by the Indian government, and domestic production challenges caused by heavy rains affecting onion yields.

These conditions have put significant pressure on the entire supply chain, the BTTC stated.

The report also noted that India, one of the key sources of onion imports for Bangladesh, currently imposes a 20 percent export duty on onions due to reduced production. This duty has led to higher import costs, ultimately pushing up prices in the Bangladeshi market.

Furthermore, the international market has experienced a 116.49 per cent increase in onion prices over the past year.

According to the Ministry of Commerce, the national demand for onions is around 2.6-2.7 million tonnes annually, with 75-80 per cent of this demand met by local production and the rest covered through imports, predominantly from India.

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