The Bangladesh Trade and Tariff Commission (BTTC) has recommended the National Revenue Board (NBR) to withdraw the existing 5 percent customs duty on onion import to reduce the price of the essential commodity in the local market.
To this end, the commission sent a recommendation letter to the NBR, Chairman (Secretary) of the BTTC Dr Moinul Khan said.
Currently, local onion is being sold at a price range of Tk140 to150 per kg at the retail level, while imported onion between Tk120 and 130.
According to the Trading Corporation of Bangladesh data, the price of local onion increased by 30.23 percent in a month and imported onion price increased by 7.89 percent during the period.
“India has imposed a 20 percent duty on onion export due to low production this year caused by heavy rainfall, which has led to an increase in Indian onion price 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.
However, the shortage of the commodity persists in the local market.
“In order to control prices by increasing supply, it is advisable to withdraw the 5 percent tariff altogether at this point. By reducing cost, import of onion will be encouraged,” it said.