India has decided to permit the export of onions for which Letters of Credit (LCs) were issued until December 7.
As a result, there is a possibility of Indian onions to enter the country through the Hili Land Port in Dinajpur, starting Monday.
There is also a possibility that India might lift the export ban on onions, including those under old LCs, which could further stabilize the market, importers hoped.
Shahidul Islam, an onion importer at Hili Land Port, said: "Despite the higher prices set by the Indian government, we have continued importing onions to maintain a normal supply and control prices in our market. However, the Indian government halted onion exports on December 7, due to the onion crisis in their domestic market.
"India even stopped the export of pre-tendered onions. Due to this, we faced a loss. Since then, we have been requesting Indian traders to export pre-tendered onions. Also, we have been demanding the export of onions from old LCs. Finally, India has decided to export the tendered onions," he added.
He further mentioned: "Approval for onion exports has been granted for Sonamasjid Land Port, but not yet for Hili Land Port. We expect a decision by Monday, so the onions could start entering from then. The export ban has caused onion prices in India to fall to ₹12-25. Indian farmers are protesting for export permission due to this price drop, and we're hopeful that the ban will be lifted."
The trader added: "Several importers at Hili Land Port, including myself, have old LCs for over 1,000 tons of onions. Overall, around 30 trucks of onions are stuck at the port, and three of those trucks are mine."
Anil Kumar, an Indian C&F agent, said: “The Indian government will now allow the export of onions that have completed the tender process by December 7. In the case of Mohidipur port, approval has already been given for the export of previously tendered onions. However, the Hili Land Port has not yet been approved. However, it may be approved on Monday. In that case, the export of previously tendered onions through Hili Land Port may start from Monday or Tuesday.”
India banned the export of onions to other countries effective December 7, as per a notification issued by the Indian Ministry of Commerce and Industry on that day.
On August 20, the Revenue Department of the Indian Finance Ministry imposed a 40% duty on onion exports to Bangladesh, causing a hike in the price of the item mainly used as a spice in local markets.
Later, the Indian government set a Minimum Export Price (MEP) of $800 per ton on a free-on-board basis for the export of onions, with effect from October 29.
Following the import ban, prices of onions in Bangladesh jumped two-fold in a matter of hours. However, due to strict monitoring by government officials and the new onion harvest
