Online Desk: The Revenue Department of the Indian Finance Ministry has imposed a 40 percent duty on onion exports to Bangladesh effective on Sunday, causing a hike in the price of the item mainly used as spice in local markets.

An Indian gazette notification signed by Amreeta Titus, deputy secretary of the Revenue Department under the Finance Ministry said the duty will remain effective till December 31 this year. India imposed the duty for the first time.

Importers of Hili Land Port said earlier they paid no tax for importing onions from India. Due to the 40 percent duty, an extra Tk 10 per kg will have to be counted. On the other hand, each kg of onion is being sold at Tk 50 since this morning. Per kg of onion was being sold at Tk 39-47 just a day back.

They said Sunday is a weekly holiday in India and import of onion won’t be possible until the newly imposed duty is not paid, urging the Bangladesh government to look for alternative markets to import the item from.

Indian exporters said onion prices are soaring in the country and the government has imposed the duty to discourage exports. They suspected that the prices may be hiked next month as substantial amounts of onions rotted due to excessive heat.