India’s removal of the $550 per tonne minimum export price (MEP) and reduction of export duty on onions is impacting Bangladesh’s kitchen markets. In Dhaka’s Shyambazar, Indian onion prices dropped by Tk 4 to Tk 5 per kilogram, now selling at Tk 95-96 per kg. Although no new shipments have yet arrived, wholesalers anticipate further price drops once new consignments come in. Onion prices at retail have fallen slightly, from Tk 100-115 per kg to Tk 100-105 per kg. India’s decision to remove the MEP comes ahead of assembly elections in Maharashtra, its largest onion-producing state, and follows months of export restrictions. Despite local production of 3.4 million tonnes of onions in Bangladesh, an additional 600,000 to 700,000 tonnes are needed due to post-harvest losses, largely caused by inadequate storage.
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