As India-Bangladesh relations sour over political turmoil, Dhaka is looking at sources other than India to import potatoes and onions in a bid to wean off its dependence on India. Dhaka sources potatoes just from India while onions come mostly from India and Myanmar, while some of it comes from Pakistan, China, and Turkey.
India traditionally enjoys a strong trade surplus with its neighbour and the country is a major market for India’s textile and agricultural exports. Exports to Bangladesh rose from US$3.2 billion in 2010-11 to a peak of US$16.2 billion in 2021-22. However, after the interim government assumed power, the trade between India and Bangladesh had dipped. The current turmoil over the ISKCON monk’s arrest has dried up trade via the Integrated Check Post Fulbari Indo-Bangladesh border.
The Bangladesh Trade and Tariff Commission is said to have found some potential sources and alerted the country’s commerce ministry. Talks were also held with the importers.
The plan is to replace Indian potatoes with those from Germany, Egypt, China, and Spain. Onions can be bought from China, Pakistan and Turkey. “The BTTC has identified alternative sources to keep the price and supply of potatoes and onions stable. We would urge importers to consider these alternatives,” Selim Uddin, secretary to the commerce ministry.
The reasons cited by authorities for the move are “the rising prices of onions and potatoes in the Indian market” and the “various decisions taken by Indian authorities to discourage exports.”
Bangladeshi authorities also cited an alleged increase in price as another reason. The BTTC alleged a rise of 10.59 per cent and an annual rise of 131 per cent for onions and potatoes .
India had confirmed the visit by its Foreign Secretary Vikram Misri to Dhaka on Monday.
