The Indian government has withdrawn the ban on importing onion after five months, but the imposition of a 40% duty on export has increased uncertainty in onion import in Bangladesh.
Meanwhile, in the last two days, 20 importers of Hili land port have received new permission to import 27,000 tons of onions.
Shahidul Islam, vice president of Hili Land Port Import-Export Group and onion importer, said: "The importers have prepared to import since the Indian government has withdrawn the ban on onion export. The importers have already applied to the concerned department for permission to import onions. Several people have already opened LCs after getting permission, and some are waiting to open.”
But now the problem is that India has not yet withdrawn the 40% duty imposed earlier on onion exports. Because of this, some problems have been created with the start of onion import till now.
Mobarak Hossain, another importer said that the importers of the port have started preparing as India has withdrawn the ban on onion exports. They have started opening LCs along with getting IPs and negotiating with Indian exporters.
“Many even bought onions and loaded them into trucks, which arrived at parking lots inside India. However, the 40% duty imposed by the Indian government on onion exports is still in place. Unless it is revoked, import of onion will not be possible even if export is allowed.”
After paying 40% export duty, an additional Tk25 will be charged per kg of onion import. By doing this, the price of onion will go up to Tk70 per kg after paying all expenses including port charges.
“According to the current market of the country, if we import onion at this price, we will face loss. In this situation, if we import onion, we will have to calculate a loss of Tk6,50,000 per truck onion. Because of this, importers are losing interest in importing onion due to the fear of loss. In the meantime, the onion trucks that came to the Hili parking lot in India, are being unloaded and sold in the local market. And those who have warehouses are putting them down in warehouses,” said the importer.
Yusuf Ali, assistant pest control officer of the Hili land port plant pest control centre, said that there was no ban on onion import from India by Bangladesh. Originally, the Indian government had banned the export of onions. India lifted the ban on onion export last Saturday.
“After that, the importers started applying to our respective offices. Given their application, the concerned department is issuing IP. Till Monday, 20 importers of Hili land port have received permission to import 27,000 tons of onion. Also, those who have already obtained an IP can import onion with that IP if it is valid. Those who have got IP can open LC and import.”
In the last year, India fixed the price of onion US$800 per ton on October 28 year to discourage import from India while the previous price was US$200-300 per ton.
The importers were importing onions through the port at that price. Later, the Indian government suspended the export of onions for four months citing the disruption of onion production due to floods.
On December 7 last year, the country banned the export of onions till March 31 through a letter signed by Santosh Kumar, director general of India's foreign trade wing. Since then, the import of onion from India through various land ports including Hili has been stopped.
On March 23, the government of India announced an indefinite ban on onion exports, extending that period.
According to a report by the Indian media Indian Times, the country's government has lifted the ban on onion export from Saturday.
According to a notification from the Office of the Director General of Foreign Trade Branch of India, the minimum export price (Minimum Export Price-MEP) of these onions will be USD550 per ton.
