Bangladesh (Common Wealth) _ Apart from India, the Agriculture Ministry of Bangladesh today approved onion imports from nine other countries. The import of 21,580 tonnes of the bulb from China, Egypt, Pakistan, Qatar, Turkey, Myanmar, Thailand, the Netherlands, and the UAE has been approved. According to the ministry, the majority of the vegetable would be imported from Pakistan.
The action comes just a few days after onion prices skyrocketed in the home market after India placed a 40% export tax on the shipment of the popular bulb in order to contain the price spiral in its domestic market.
According to Trading Corporation of Bangladesh market pricing, retail prices of imported onions today were between Tk 70 and Tk 75 per kilogram, up from Tk 55-60 a week earlier. Locally farmed onions have also become more expensive. Retail rates for the locally made variety were Tk 80-Tk 85 per kilogram today, up from Tk 65-Tk 80 a week earlier.
The agriculture ministry began allowing onion imports in the first week of June this year in order to cool price increases caused by a decrease in supplies of the vegetable cultivated locally. It had approved bids to import 13.7 lakh tonnes of onions until today, with enterprises bringing in 3.79 lakh tonnes thus far.
Apart from India, the government has approved a proposal to import 21,580 tonnes of onions from nine other nations. The action was made on Thursday by the Ministry of Agriculture in response to India’s decision to impose duties on the product’s export.
Bangladesh will now import 2,400 metric tons of onions from China, 3,910 metric tons from Egypt, 11,820 metric tons from Pakistan, and 1,100 metric tons from Qatar. Another 2,110 tonnes will arrive from Turkey, 200 tonnes from Myanmar, 33 tonnes from Thailand, 4 tonnes from the Netherlands, and 3 tonnes from the UAE.
According to the ministry, the government has authorized the import of 1.37 million tonnes of onions so far, with 379,000 tonnes arriving as of Thursday.
Bangladesh, according to the government, requires 3 million tonnes of onions each year, which is less than what is produced. However, because one-third of the produce spoils, imports, primarily from India, are required to make up the difference. During the 2019-20 fiscal year’s crisis, the price of a kilogram of onions climbed to as much as Tk 200. To stabilize the market, importers brought in staples from Myanmar, Turkey, China, and Egypt.
After India recently placed a 40% levy on onion exports, Agriculture Minister Abdur Razzaque stated Bangladesh would explore to import from other countries. The levy imposed by the world’s largest onion exporter will help New Delhi lower domestic costs ahead of important state elections later this year, but it will force Asian consumers to pay more because other regional exporters have limited supplies.
India’s onion exports increased 63% year on year to 1.46 million metric tons in the first half of 2023. Bangladesh, Nepal, Malaysia, the United Arab Emirates, and Sri Lanka rely on Indian supplies. Onions are the foundation of classic Asian foods such as biryani in Pakistan and India, belacan in Malaysia, and fish curry in Bangladesh.
According to one exporter, the Indian tariff would cause China and Pakistan to boost their prices because they have a restricted excess for exports. In July, India’s annual retail inflation (INCPIY=ECI) reached its highest level in 15 months as vegetable and cereal prices surged, putting pressure on the government to act to reduce prices.
As a result, in order to reduce domestic demand and inflation, India stunned purchasers worldwide last month by slapping a ban on the sale of widely consumed onion and non-basmati white rice.
