Onion prices soar in Khulna market as India slaps export duty

Onion prices have gone up in Khulna market just after India's imposition of a 40 percent duty on its export which came into effect on Sunday (August 20).

The prices of onions have increased by Tk 10-15 per kg in the local market in just a day.

On Sunday, Indian onions were being sold at Tk 65-70 per kg, while local onions at Tk 90 per kg. But on Saturday, per kg of Indian and local variety onions were sold at Tk 55-60 and Tk 75 per kg respectively.

Sujan and Kawsar, traders of Mylapota Sandhya Bazar in the town, said that there is no shortage of onion in the market.

However, they are paying Tk 10-15 more for buying per kg of onion. As a result, onions have to be sold at a higher price, they added.

On August 19, the Revenue Department of the Indian Finance Ministry imposed a 40 percent duty on onion export to check price hikes.

Importers said earlier they paid no tax for importing onions from India. Due to the 40 percent duty, an extra Tk 15-19 per kg will have to be counted.

An Indian gazette notification signed by Amreeta Titus, deputy secretary of the Revenue Department under the Finance Ministry, said the duty will remain effective till December 31 this year.

Indian exporters said onion prices are soaring in the country and the government has imposed the duty to discourage exports.

Buyers said that the onion prices have increased compared to the last few days. Onions may be stockpiled by unscrupulous traders on the pretext of import duty that may cause further rise in prices, they feared.

Ibrahim Hossain, deputy director of the Khulna divisional office of the Directorate of Consumer Rights Protection, said that they are monitoring the market.