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Banks asked to keep minimal margin against onion import

Staff Correspondent | Published: 16:03, Sep 17,2020

 
 

The Bangladesh Bank on Thursday asked all the scheduled banks to keep charges against the letter of credits for the import of onion at a very minimum level.

The central bank came up with a circular in this regard on the backdrop of sharp increase in onion prices in the last few days after India imposed a ban on onion export on September 14 without any prior notice.

It was noticed that the price of onion in the local market has increased due to the increase in onion price in the international market, the central bank circular said.

Under the circumstances, the BB asked banks to slap margin against the letter of credit for the imports of onion at a very minimum level to keep the supply and prices of the kitchen commodity stable.

The BB issued the circular with immediate effect and said it would remain valid until December 31 this year.

Immediately after the imposition of ban on onion export by the Indian government, the prices of the kitchen commodity increased up to Tk 120 a kilogram on Wednesday.

Last year, the central bank, on the same ground, gave similar waiver to the onion importers and the waiver was valid until May 30 this year.

On September 29 last year, India imposed a ban on the export of onion due to a price hike of the item in its domestic market and the price of the item shot up to Tk 300 a kilogram in Bangladesh.

India had lifted the prohibition on March 15 this year.

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