Bangladesh: Tariff Commission recommends withdrawal of duty on imported onions

Published 2024년 10월 31일

Tridge summary

The Bangladesh Trade and Tariff Commission has advised the National Revenue Board to eliminate the 5% customs duty on imported onions to curb rising local prices, which have increased by over 30% in a month. This price surge is attributed to India's 20% export duty on onions due to low production from heavy rainfall. Despite increased imports in October, Bangladesh faces a shortage, as the country relies on imports to meet 20-25% of its annual onion demand of 26-27 lakh tonnes, primarily sourced from India. The commission believes that removing the tariff would boost imports and help stabilize prices.

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Original content

The Bangladesh Trade and Tariff Commission has asked the National Revenue Board (NBR) to remove the 5% customs duty on imported onions to reduce the price of the essential commodity in the local market. The commission sent a recommendation letter to the revenue board in this regard, according to sources at the Ministry of Commerce. Currently, local onions are being sold at a price range of Tk140-150 per kg at the retail level, while imported ones are priced between Tk120-130. According to the Trading Corporation of Bangladesh data, the prices of local onions have increased by 30.23% in a month. Imported onion prices have increased by 7.89% during the period. "India has imposed a 20% duty on onion export due to low production this year caused by heavy rainfall, which has led to an increase in Indian onion prices in the Bangladeshi markets," the Tariff Commission stated in its letter. The commission also said onion imports increased in October compared to the previous month. ...

Source: TBS