Reduce import duty to cool off prices of essentials

The Bangladesh Trade and Tariff Commission (BTTC) has urged the government to significantly reduce tariffs on onions, potatoes and eggs to bring down current red-hot prices by boosting the supply of these food items through imports.

The BTTC recommended that the National Board of Revenue (NBR) completely remove the import duty on onions and reduce tariffs on eggs and potatoes to 5 percent from the current total tax rate of 33 percent.

The BTTC sent a letter to the NBR last week and pointed out that lowering tariffs on these items for a specific period would encourage imports, which could help reduce inflation.

The commission, which operates under the Ministry of Commerce, noted that recent flooding in the eastern part of the country has severely impacted poultry farming in 11 districts, leading to a shortage in egg supply.

Besides, potato production has declined by 12 lakh tonnes, leading to a rise in prices of this starchy vegetable.

The price of onions, another kitchen staple in Bangladeshi cuisine, has shown no signs of easing.

This is largely due to India, a key supplier, maintaining a 40 percent export duty in addition to a minimum export price of $550 per tonne to stabilise its domestic market.

Given these circumstances, the BTTC advocated for reducing import duties to ensure stability in the supply and prices of these essential items.

Potato was being sold at Tk 52 to Tk 60 per kilogramme (kg) in Dhaka kitchen markets yesterday. This was an increase of 28.74 percent from that on the same day last year, according to the state-run Trading Corporation of Bangladesh (TCB).

The local variety of onions was at Tk 110 to Tk 120 per kg, which was an increase of 35.29 percent.

The imported variety of onions was at Tk 100 to Tk 110 per kg, which was an increase of 50 percent.

Meanwhile, every four eggs were selling at Tk 50 to Tk 53 -- with the prices almost unchanged in the past year.