India prohibits the export of onions to Bangladesh

At the beginning of September 2020 the Ministry of Trade and Industry of India decided to ban the export of onions to Bangladesh. Following this decision, the Bangladeshi market has recorded an increase in the price of Indian onions from Tk 55 to Tk 70.

The result of India’s actions is a nervous border situation. According to recent reports, at this moment hundred of trucks loaded with onions are waiting to enter the country. These circumstances forced the Bangladeshi authorities to send an official request to the Indian authorities to start exporting onions again. These actions have raised many concerns about the negative impact on the supply of basic products on the Bangladeshi market.

On Wednesday, Minister of Commerce Tipu Munshi held a press conference at which he said: “It is difficult to understand why India is stopping exports. Our Ministry of Foreign Affairs has sent a letter to India in this case.”

India’s actions are not covered by the arrangements made already in January this year at the meeting of Trade Secretaries where representatives of Bangladesh asked India to not stop the export of everyday food products.

AHM Finance Minister Mustafa Kamal indicated that he would consider withdrawing five percent of the duty on onion imports. He also said that in order to avoid a crisis, onions are also imported from Turkey and Egypt through the Trading Corporation of Bangladesh (TCB) and should come to the country in the near future.

Aleksandra Zakrzewska