India Imposes 40pc Duty on Onion Exports to Bangladesh

Onion prices have increased as a result of the Revenue Department of the Indian Finance Ministry imposing a 40% levy on shipments to Bangladesh, which went into effect today. Onions are mostly utilized as spices in local markets.

The duty will continue in place through December 31 of this year, according to an Indian Gazette announcement signed by Amreeta Titus, deputy secretary of the Revenue Department under the Finance Ministry. India was the first country to implement the tax.

Prior to this, Hili Land Port importers said they had not paid any taxes while bringing in onions from India. The additional Tk 10 per kilogram must be counted due to the 40% duty.

On the other hand, starting this morning, each kilogram of onions is being offered for Tk 50. Just the other day, onions were being offered for Tk 39–47 per kilogram.

They advised the Bangladeshi government to search for alternate markets to buy the product from because Sunday is an Indian weekly holiday and imports of onions won't be allowed until the recently imposed tariff is paid.

Indian exporters said that because domestic onion prices are skyrocketing, the government has imposed the charge to deter exports.

Because of the significant number of onions that withered due to the extreme heat, they had a hunch that prices may increase the next month.