BTTC Proposes Duty Removal to Stabilize Onion Prices

The Bangladesh Trade and Tariff Commission (BTTC) has advised the National Board of Revenue (NBR) to eliminate the existing 5% customs duty on onion imports. This recommendation aims to ease escalating prices and address ongoing supply pressures in local markets, according to commerce ministry sources.

Sharp Price Increase in Local Onion Market

In local markets, domestic onions are now priced between $1,27-$1,36 per kilogram, while imported onions are selling at $1,09-$1,18 per kilogram. These rates reflect a notable $0,18-$0,27 per kilogram increase over the past 18 months. According to the Trading Corporation of Bangladesh (TCB), domestic onion prices have surged by 30.23%, and imported onions have risen by 8.0% during this period.

Key Drivers of Price Surge

The BTTC report attributes the onion price hikes to several factors:

• Reduced Production in India: Lower output in India has constrained export supplies.
• Increased Import Costs: India’s 20% export duty on onions has significantly raised import expenses.
• Domestic Supply Challenges: Heavy rains have affected local onion production, further straining the supply chain.

These combined pressures have driven up costs across the supply chain, affecting both domestic and imported onion prices in Bangladesh.

India’s Export Duty Adds to Import Costs

India, a primary onion supplier for Bangladesh, imposed a 20% export duty due to reduced yields, which has contributed to rising import costs. Over the past year, international onion prices have climbed by an astonishing 116.49%, adding to the strain on Bangladeshi markets.

National Demand But Have Import Dependency

The Ministry of Commerce estimates Bangladesh’s annual onion demand at approximately 2.6-2.7 million tonnes, with 75-80% of this met by local production and the remainder through imports, primarily from India.





Click here to reach our trading platfrom CMBroker