Potato, onion prices fall after duty cut: tariff commission

Import tax cut by the National Board of Revenue (NBR) has brought down potato and onion prices in the domestic markets although the two popular vegetables have seen a rise in their international rates.

Prices of potatoes dropped by 1.79 percent to Tk 54-Tk 56 each kilogramme (kg) over the last month.

Onions, a good portion of which are imported to cover the deficit in local production, also registered a decline.

Prices of locally grown onions fell by 6.52 percent to Tk 105-Tk 110 per kg on September 29 from a month ago.

Prices of imported onions dropped by 11.6 percent to Tk 90-Tk 100 since August 29 this year, the Bangladesh Trade and Tariff Commission (BTTC) said in a report submitted to the commerce ministry.

"A positive impact of the duty cut is visible in the market," the report mentioned.

The NBR slashed regulatory duty on onion imports to 5 percent on September 5 following recommendations of the BTTC that tax cut will encourage imports and increase supply of these food staples.

The BTTC also reduced customs tariffs on the import of potatoes to 15 percent from the previous 25 percent.

The reduced import taxes will remain effective until November 30 this year.

In its latest report, the commission said prices of onions stood at $510 a tonne, which was 25.4 percent higher than the prices on August 30.

International prices of potatoes grew by 20.1 percent in a month to $358 each tonne today, it said.

The BTTC said increasing potato prices in the global market might lead to a spike in its local rates.