Local Onion prices rise to Tk155: Trade Commission proposes tax cut

In response to rising onion prices, the Bangladesh Trade and Tariff Commission has recommended removing the 5% import tax on onions. This move aims to help keep prices under control.

In Dhaka, the price of locally grown onions has increased by nearly Tk25 per kilogram in just the past two weeks. 

On November 1, visits to major markets like Karwan Bazar, Kalyanpur, and Hatirpool revealed that high-quality local onions are now selling for Tk155 to Tk160 per kilogram, up from Tk130-135 a couple of weeks ago. 

Second-grade onions are priced at around Tk135 per kilogram.

Traders say this price jump is due to seasonal shortages of local onions. 

Mohammad Abdul Majed, a wholesale onion seller at Shyambazar, explained to The Business Standard (TBS), "Every year around this time, local onion supplies begin to run low, which drives prices up. To meet demand, we have to rely on imported onions."

Majed noted that second-grade local onions are currently selling wholesale for Tk120-125 per kilogram, reflecting a Tk20 increase over the last two weeks. 

He added that there is a shortage of first-grade local onions, stating, "Prices go up each year as local onions become scarce, but there are no shortages in the market now thanks to imports. Indian and Pakistani onions are available for Tk90-92 per kilogram."

He also mentioned that prices for imported onions have remained stable. "Local ‍‍`murikata‍‍` onions will start arriving soon, which should help balance the market. Until then, we still need imports," he said.

In the Kallyanpur Notun Bazar area, onion seller Anwar Hossain reported to TBS that large Indian onions are priced at Tk130 per kilogram, while smaller ones are going for Tk120.

To address the recent price increases, the Bangladesh Trade and Tariff Commission has sent a letter to the National Board of Revenue (NBR) asking for the import tax on onions to be lifted. 

This request was made on October 31 in hopes of lowering prices for consumers. 

Earlier, the NBR had removed the regulatory tax on onion imports in September, which is set to remain in place until the end of November.