NEW DELHI: Bangladesh is happy with India's decision to slash export duties on onions as this will translate into lower prices, leading to the resumption of onion imports from India after more than four months.
"We are optimistic that this will lead to reduction of prices in the local markets across Bangladesh as we are reeling under inflation. Indian onions will find their way after a gap of over four months. We are also viewing this as a goodwill gesture," said a source from Dhaka
Indian exporters have communicated this change to importers of onions in Bangladesh. India had slashed export duties from 40% to 20% on Friday.
Onion importers in Bangladesh had turned to other countries further away including Egypt and Pakistan, which kept the cost high. Resumption of imports from India will be a breather, said a source.
It may be recalled that trade between India and Bangladesh had been stalled for sometime after the political situation in Bangladesh became volatile. Partial resumption began in the second week of August from the Petrapole land route. Other land routes have also reportedly resumed trade partially.
Meanwhile, Farida Akhter, an adviser for the Ministry of Fisheries and Livestock, had said that Bangladesh would not send hilsa (ilish) fish to India for Durga Puja. She also mentioned that the government had decided against bringing in foreign meat to safeguard the interests of domestic farmers.
With Durga Puja less than a month away, there is no certainty on whether Bangladesh will reverse its decision to bar hilsa export to India. However, India's decision to slash onion export duties could lead to a change of heart, added the source.