Finance sat on commerce's onion caution
Star Report
The commerce ministry had anticipated a rise in onion prices much earlier than it really happened and asked the finance ministry to take action.Still, the finance ministry sat on the warning and the prices spiralled just before Ramadan began, according to sources. On August 13, the commerce ministry wrote Finance Minister M Saifur Rahman that prices of onion had increased 25 percent and proposed reduction of duty to 14.5 percent from 29.5 percent. It was also proposed that the changed rate should be effective for imports before October 11. However, the finance ministry ignored the proposal. Only when the price spiral caused public outcry did an interministerial meeting on October 19 decided to withdraw full duty on onion. "Had our proposal been accepted, onion prices would never have crossed Tk 18-20 a kg," said a commerce ministry official, wishing not to be named.
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Wholesalers at Dhaka's largest kitchen market Karwan Bazar sell local onions yesterday at Tk 28 to 30 a kilo, competing with imported onions at Tk 22. PHOTO: STAR |
