Bangladesh Bank moves to stop onion price hike

The central bank has fixed the ceiling on the rate of interest on import financing of onions at 11 percent in order to stop rise in their price.

The Bangladesh Bank also ordered on Thursday to keep the margin of LC (Letter of Credit) opened to import onion at the lowest level.
 
The orders will be effective until Dec 30, according to a circular issued for the chief executives of banks.
 
“Onion is getting costlier in the domestic market following rise in price in the international market recently, leading to lack in supply for consumers,” the circular said.
 
The prices of onion rose by over 30 percent in three days earlier this week. The government took several decisions, including import through Trading Corporation of Bangladesh, to control the prices.
 
It decided to strengthen monitoring the market and clear imported onion at the ports fast.
 
According to the TCB, local onions were sold at Tk 80 to 85 a kg on Thursday. Imported onions cost Tk 70 to 80 per kg.
 
A week ago, local onions were sold at Tk 60 to 65 per kg and imported onions at Tk 55 to 65 per kg.