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Impose minimal LC margin on onion import

BB asks scheduled banks

Staff Correspondent | Published: 22:48, Sep 17,2020

 
 

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

The central bank issued a circular in this regard on the day against the backdrop of a sharp increase in onion prices in last few days following the imposition of ban, without any prior notice, on onion export by the Indian government on September 14.

It was observed that the prices of onions on the local market increased due to the rise in onion prices on 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 onions at a very minimum level with a view to keeping supply and prices of the kitchen commodity stable.

The BB issued the circular with immediate effect and would remain valid till 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, after the prices of the commodity had almost doubled on Tuesday.

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

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

India had lifted the prohibition on March 15 this year.

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