Staff Reporter :
The government of India has allowed the export of 50,000 metric tonnes of onion to Bangladesh through the National Cooperative Exports Ltd. (NCEL), according to notifications issued by the Directorate General of Foreign Trade (DGFT).
They also allowed exporting 14,400 tonnes of onions to the United Arab Emirates (UAE).
Commerce Ministry Joint Secretary Md. Abdus Samad Al Azad confirmed the information.
The standard operating procedure or modalities, such as the price and the export company that will send the onions, have not yet been finalised. We hope that this will be finalised soon and the imports will start.
Notably, onion prices have risen significantly this year compared to previous years. According to the Trading Corporation of Bangladesh (TCB), consumer prices reached Tk120 per kilogramme on March 1, up from Tk35 on the same date last year. The data stated that the current price of local onions is 171.43% higher than in the same period last year.
The onion market became volatile after the Indian authorities imposed a ban on onion exports.
On December 8, 2023, India extended a ban on exports of onions until March 31 of this year. Prior to that, India imposed a minimum export price of $800 per tonne and 40% export duties for onions-much higher than the prices at which importers were buying-on October 28, 2023, to curb exports and increase domestic availability until December 2024.
The price of onions in Bangladesh surged by Tk20-25 per kg after India announced an extension of onion export restrictions.
After India’s onion export ban, the Tariff Commission recommended importing the item from alternative countries. But traders have been reluctant to go for the suggestion.
