Potatoes and onions are being sold at that increased price even if the duty is reduced

The government has reduced the duty on onion and potato. However, this product is being sold in the retail market at the same price as before.

Considering the existing market price and supply of potato and onion in the country, in view of the recommendations of the Bangladesh Trade and Tariff Commission, the National Board of Revenue (NBR) has reduced the duty on import of potato to 15 percent and removed the regulatory duty of 3 percent. Besides, the existing 5 percent regulatory duty on onion import has been withdrawn. According to the proposal of the Tariff Commission, NBR issued a notification in this regard on Thursday.

Today (Friday) various markets of the capital were visited, it was seen that onions are being sold at the rate of Tk 120 per kg in the retail market as before. Besides, potatoes are being sold at Tk 60 per kg as before.

A vendor named Khorshed Alam bought onions and potatoes from the wholesale market and sold them to a local grocery store in Malibagh. Regarding the price of these in today's market, he said, onion is being sold at 120 taka and potato at 60 taka per kg in the retail market for several days. That price is still going on today. It is heard that the government has reduced the duty on onion and potato but it will take some time to have an impact on the market. Because I bought it from the wholesale market at a higher price. The amount of goods that I have brought will last another 3/4 days in my shop. When it ends, I will bring the goods again, then if I get it at a lower price, I will sell it at a lower price.

A private employee named Sajjad Hossain lives in Moghbazar area. He came to the market and bought potatoes and onions among other products. Regarding the increased price of these two products in the market, he said that they have to buy onion at the rate of Tk 120 per kg for many days. That potato has to be bought for 60 taka. If these two daily necessities cost so much, it becomes difficult for common people like us. The government should take necessary measures to fix the prices of the products within the purchasing power of the common people.

Meanwhile, Rampura market trader Masud Rana said about the price of potato and onion, "I bought potato and onion from the wholesale market this morning." The price of onion per kg after buying it as palla (5 kg) has fallen to Tk 110 excluding all costs. Now after transporting it, I am selling it at a retail price of 120 taka. Similarly, the level of potato has fallen to 55 taka, now I am retailing it at 60 taka per kg in my shop. Today their purchase price is the same as before, when we can buy at a lower price in the market, we can also sell at a lower price in the retail market.

NBR has issued a notification in accordance with the proposal of the Tariff Commission by reducing the duty on onion and potato yesterday.

Before this, the advisor to the Ministry of Commerce. Salehuddin Ahmed, in a meeting of the Ministry of Commerce on September 1, directed the NBR to take necessary initiatives to reduce the duty and value added tax on daily commodities like onions, potatoes, fertilizers and pesticides.

In the notification, the existing 25 per cent import duty on import of potatoes has been reduced to 15 per cent and the applicable 3 per cent regulatory duty has been completely withdrawn. Besides, the 5 percent regulatory duty applicable on onion has been completely withdrawn. 

It should be noted that this facility will remain in force till November 30 of this year. It is expected that the withdrawal of import duties and regulatory duties on these commodities will bring down the prices of potatoes and onions and give relief to the consumers.