The New Nation - Internet Edition

Syful Islam

Neighbouring India is giving substantial subsidy on onion export to grasp Bangladesh market in this peak season forcing local farmers to sell the vegetable at Tk 8 to Tk 9 per kilogram.

Informed sources said India is providing US$65 subsidy on per ton onion export with a view to make the Bangladeshi onion producers less competitive and discouraging them from cultivating onion in future.

India’s Director General of Foreign Trade had imposed ban on onion export at a time when the price was rising. The ban put some oil on the fire and led the price to reach Tk 50 per kg. India lifted the ban; on November 16; at the time when the price of onion is customarily to fall on arrival of the new crop.

During the imposition of ban the Director General of Foreign Trade of India said the bar will be effective for 15 days. But India prolonged the ban for 46 days.

Local farmers said production cost of onion this year is much higher than the selling price. Farmers had to buy per ton of onion seed at Tk 2,200 against last year’s Tk 700. Moreover, fertiliser was very much costly this year due to supply shortage and mismanagement in distribution.

During the peak season in the last year, per kg of onion was sold at Tk 13 to Tk 14. Farmers will face huge loss this year due to price fall and lose their capital, said some businessmen in the city’s wholesale spice market Shayambazar.

Commerce Ministry sources said government earlier had lifted total import duty on onion following the price spiral of the spice. As India is providing huge subsidy on onion export, price of Indian onion in Bangladesh market fell to a great extent.

Onion traders said the government has to impose duty on onion import so that price of per kg of onion stays between Tk 15 and Tk 20, the production cost of farmers. Unless the duty was imposed, local farmers will incur huge financial loss.

Importers said at present Bangladesh is totally dependent on India on onion import. Bangladesh can break India’s monopoly through exploring new markets like Myanmar and China. Meanwhile, some importers already have started to import onion from China.