Commerce Secretary Tapan Kanti Ghosh has strongly criticised the local onion sellers for overnight increase of onion price following India’s extension of the onion export ban. He, however, said that the government had suspended onion import in the interest of the farmers.
Speaking at a seminar on Sunday (10 December), he labelled actions of Bangladeshi onion sellers as ‘irresponsible business’. “If someone bought a product for Tk 100-120 today, how can its price suddenly become Tk 200 the next day? The price should not increase overnight if India bans onion export,” he said.
The National Board of Revenue (NBR) arranged the seminar at Agargaon in the city on the occasion of the VAT Day and VAT Week 2023.
NBR Chairman Abu Hena Md Rahmatul Muneem presided over the event, while Finance Secretary Khairul Majumdar and president of Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Mahbubul Alam also spoke on the occasion.
During his speech, Tapan Kanti Ghosh criticised the onion sellers who take advantage of the opportunity when imports are halted, “Many businessmen take advantage of the opportunity when imports are halted. In a free market economy, it cannot be restricted. Even with policing, we can't stop it,” he commented.
In such a scenario, the commerce secretary suggested the need for a seasonal tariff arrangement, saying, “We suspend import in the interest of the farmers. However, going forward we need to adopt a seasonal tariff system to maintain our import opportunities. At times tariff will be imposed, sometimes not…but import opportunities has to be preserved.”
“Earlier, we have seen a decrease in potato and egg prices after allowing import opportunities,” he added.
During his speech, Finance Secretary Khairul Majumdar revealed a reduction in inflation, foreseeing a fall below 7 per cent by the end of the fiscal year. “There has been a reduction in inflation last month, and it is likely to decrease further next month. By the end of the fiscal year, inflation will fall below 7 per cent,” he said.
He called upon the businessmen to commit to paying taxes without imposing distress on others.
The price of onion in Bangladesh nearly doubled overnight after India has extended its restriction on onion export till March next year. However, the government bodies concerned and the field-level administration on Friday stepped up measures to check the prices of the food items and increase their availability.
In many places in Dhaka and other parts of the country, the government bodies concerned took appropriate legal action against unscrupulous traders responsible for hoarding goods, particularly the onion.
The officials of the Directorate of National Consumers’ Right Protection (DNCRP) have been deployed to all kitchen markets in the capital and some other parts in the country so that the traders sell onions at the proportionate rate at which they made their purchases earlier.
In May 2022, the Bangladesh government halted onion import from India to support local farmers. India’s 2020 export ban on all onion varieties except cut, sliced, or in powder form was implemented to control rising domestic prices amid flood-related production losses.
The annual production of onions in Bangladesh exceeds 3.5 million tonnes, with a demand of around 2.8 million tonnes. Despite high production, the country relies on imports due to significant wastage caused by storage and management complications, amounting to 25% or more of the total onion production.
