Onion prices increase by Tk15 per kg in at Bhomra after India imposes hefty duty

Prices of Indian onion have increased by Tk15 per kilogramme at Bhomra land port in Satkhira following the hefty 40% export duty imposed by India.

Importers said prices will increase further. Meanwhile, the price of onion has been volatile in the open market. 

"India does not want to export onions. Therefore, instead of direct bans, tariffs are imposed to discourage traders. This will destabilise the onion market not only in Bhomra port but in the entire country. The price will go up a lot," Bhomra C&F Association President Kazi Naushad Dilwar Raju said. 

Onion market takes heat from India's hefty export duty

"Arrangements should be made to withdraw the duty in consultation with the Indian government. If not, there is a possibility that onion exports will stop. It will cause instability," he added.

Abdur Rahim Babu, the president of the Raw Materials Association of Sultanpur Bara Bazaar in Satkhira, said, "The country's onion market is dependent on India. There is a shortage of local onions now. We are monitoring the situation."

"We sold Indian onion at Tk 45-50 per kg before the tariff was set in India. Now, due to the increase in import cost, the prices have increased by Tk15 per kg. This price will increase further. Imports also decreased. Where 80-100 trucks of onions were imported daily. Only 40 trucks of onions were imported on Sunday (20 August)." said Dipu Roy, the owner of the importing company M/s Srishti Trading.

Saddam Hussain, owner of importer SR International, said, "Indian government had never levied a duty on onion exports before. This is the first time. As a result, the price has increased, so the market has been restless."

Onion prices have been volatile in the open market. Prices of local and Indian onions have increased by Tk15-20 per kg. Indian onion was selling at Tk50-55 previously, now it is selling at Tk70-75 per kg.

Local onion is being sold at Tk 80-90 per kg which was Tk65-70 previously.