The government has withdrawn 5 percent duty on onion import to reduce the price of the kitchen essential in the local markets.
The decision has been taken as per the instruction of Prime Minister Sheikh Hasina, said Finance Minister AHM Mustafa Kamal.
The importers will enjoy the privilege till March 31 next year.
Besides, Bangladesh Bank, on September 17, instructed banks to open letter of credit (LC) to import onion with a minimum margin from the importers. It will help to reduce importers' initial investment of opening LC, a senior official of the central bank explained to The Business Standard.
The recent Indian ban on onion export to Bangladesh has triggered an unusual upward trend in its prices. With the price of onions increasing in the local market, Commerce Ministry sent a letter to the National Board of Revenue (NBR) on September 7, asking it to withdraw import duty on onions.
Earlier, the government imposed 5 per cent duty on the import of onion to protect the interest of local farmers.