Onion Imports Return After Tariff Adjustment

On Tuesday, importers resumed onion shipments at Hili Land Port in Dinajpur, Bangladesh, following a four-day pause caused by a software issue in Indian customs. India had updated its tariff system, reducing the export duty on onions from 40% to 20%. This change followed the removal of India’s minimum export price for onions, allowing Bangladesh to access better rates.

Impact of Tariff Changes

Onion shipments started arriving from India at 5:30 p.m. after importers paid the reduced tariffs. Mamunur Rashid, an onion trader, explained that earlier orders faced delays because Indian customs couldn’t apply the new tariffs due to server issues. Rashid mentioned that even with the tariff reduction, procurement costs from India remain high, which might delay price reductions in Bangladesh.

He added that if onion prices drop further in India, Bangladesh could increase imports, potentially lowering prices locally.

Current Onion Prices in the Market

Currently, imported onions range between USD 0,73 and USD 0,78 per kg. At Bahadur Bazar in Dinajpur, local onions are selling for USD 1,10 to USD 1,19 per kg. Meanwhile, Indian onions have dropped to USD 0,82 to USD 0,87 per kg, down from USD 0,96 the previous day.

India's Policy Changes

India had previously set a minimum export price on onions to limit exports and stabilize local supply after floods disrupted production. This action led to a temporary export ban, which was extended indefinitely in March. Though India lifted the ban on May 4, the government introduced a 40% export duty, affecting both supply and pricing of onions in Bangladesh.

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