TCB told to take prompt steps to import onion

Talha Bin Habib

The ministry of commerce (MoC) has asked the Trading Corporation of Bangladesh (TCB) to take prompt steps for importing onion to help ease its prices in the market.

The directive came at an internal meeting of the MoC Saturday following sharp price hike of the essential in the local market.

"We've asked the TCB to import onion from Myanmar. We've contacted our commercial counsellor in Myanmar and given the directive to facilitate import of onion from Myanmar through TCB," Commerce Secretary Mahbub Ahmed told the FE after the meeting.

The local variety of onion sold at Tk 60-65 per kg while the imported variety ranged between Tk 65 and Tk 75 Saturday compared with Tk 48-52 and Tk 44-45 per kg respectively just before the Eid-ul-Fitr.

This has prompted the government to take the decision of importing onion.

An inter-ministerial meeting will be held today (Sunday) at the MoC which will ask the private sector to import onion.

Mr Ahmed said the government is also considering importing onion from other countries such as China, Vietnam, Cambodia, Turkey and the Netherlands to meet the growing demand as well as to check its abrupt price hike in the market.

Bangladesh produces about 1.4 million tonnes of onion annually against the demand for 2.0 million tonnes. The country imports 20 per cent of its demand for onion from India annually.

India produced nearly 14 million tonnes of onion and exported 2.0 million tonnes during the fiscal year (FY) 2012-13, sources said.

The sudden increase in the demand for onion in some of its states has forced the Indian government to raise the price in order to discourage export.

Importers have expressed hope that the price of onion will come down at a tolerable level soon if there is no delay in opening letters of credit (LCs) that will help swift arrival of new consignments of onion in the country.

"Once LCs are opened, the consignments of onion will arrive in the country in less than two weeks," said a trader at Badamtali wholesale market.

Meanwhile, the Directorate of National Consumers Rights Protection (DNCRP) and MoC will separately monitor the kitchen markets today to know the supply, demand and price situation of onion.

"The market monitoring teams of the MoC and DNCRP will separately monitor demand, supply and price situation of onion in the markets Sunday," Additional Secretary of the MoC Monoj Kumar Roy told the FE Saturday.

Source: http://www.news.myanmaronlinecentre.com/2013/08/18/tcb-told-to-take-prompt-steps-to-import-onion/