The National Board of Revenue (NBR) has eliminated all import tariffs on onions to lower import costs and control soaring domestic prices.
The move, effective immediately and lasting until January 15 next year, aims to relieve consumers as onion prices have surged to as high as Tk 150 per kilogram in Dhaka.
Previously, the NBR had reduced a 5 percent regulatory duty on onion imports in September but retained a 5 percent import tariff. With the latest order, all import duties on onions have been fully abolished.
This decision follows a recommendation from the Bangladesh Trade and Tariff Commission (BTTC), which urged a zero-duty policy to encourage imports, increase supply, and curb escalating prices.
The onion price spike comes as local supplies dwindle. This time of year typically marks a lean season for the locally grown crop, from October 15 to January 15. During this period, the stocks from the previous harvest are nearly exhausted, and the early varieties of onions—meant to bridge the gap—have been affected by heavy rainfall, limiting their availability. The main harvest will not be ready until March.
The BTTC’s analysis also pointed to external factors exacerbating the situation. India, a major supplier of onions to Bangladesh, recently imposed a 20 percent export duty to address its domestic supply issues. This measure has significantly increased the cost of imported onions, further influencing prices in Bangladesh.
Bangladesh’s annual onion production is approximately 2.6 million tonnes, covering about 80 percent of domestic demand.
However, the remaining 20 percent heavily relies on imports from India. According to the Trading Corporation of Bangladesh, onion prices have surged 27 percent over the last month, prompting the urgent need for regulatory intervention.
