Bangladesh Halts Onion Import Permits, Fears Price Surge

In a move aimed at protecting local farmers' interests, the Bangladesh government has decided to stop issuing new permits for the import of onions from India. However, previously issued import permits remain valid until January 30, allowing importers to bring in onions until then. The suspension has raised concerns among importers who warn that the price of onions could rise in the local market as a result.

Since Monday morning, no new onion import permits have been granted by relevant government authorities. However, shipments of onions continued to arrive via several land ports, including Hili, under the old import permits. On this day alone, 344 tons of onions were brought in through the Hili land port on 12 trucks.

Mobarok Hossain, an onion importer at Hili port, explained that the government typically allows onion imports when domestic prices begin to rise. This policy helped control prices, with imports resuming in December after a three-month suspension. Initially, the volume of imports was limited, but with increased permits, the volume grew, and prices began to stabilize, now ranging between 40 to 50 taka per kilogram.

However, with the new ban on imports, fears are mounting that the price of onions could spike once again. The price has already risen by about two taka per kilogram at the port since the announcement. Importers are concerned that without continued imports, prices could soar back to between 80 to 85 taka per kilogram. Additionally, local onion prices might increase as demand for domestically produced onions rises.

Yusuf Ali, an Assistant Plant Protection Officer at Hili land port, confirmed that while previous permits are still valid, no new onion import permits will be granted starting today. He emphasized that the government’s decision to halt imports is a temporary measure to protect local farmers, but he also pointed out that continued imports are essential to maintain a stable supply and prevent price instability in the market.

The decision to halt onion imports was made in consideration of local farmers' interests, and imports were suspended starting August 30. Imports resumed in December after the government issued new permits to control prices.