Bangladesh plans to deliver another blow to India, eyes Pakistan as alternative for Onion and Potatoes import

DHAKA : Following reports of Bangladesh importing sugar from Pakistan, the country is now exploring additional sources for potatoes and onions, including the possibility of procuring them from Pakistan. This move is part of Bangladesh’s efforts to secure uninterrupted supplies and reduce its dependence on India, its primary supplier, amidst strained relations between the two neighbors over alleged atrocities against Hindus in Bangladesh.

Bangladesh has traditionally relied on India for its potato imports, while onions are primarily sourced from India and Myanmar, with smaller quantities imported from Pakistan, China, and Turkey. However, rising prices in the Indian market have reportedly pushed Bangladesh to seek alternative suppliers.

Until now, India has been the largest exporter of onions and potatoes to Bangladesh, with onion exports reaching approximately 7.24 lakh tonnes in the fiscal year 2023-24, up from 6.71 lakh tonnes the previous year, valued at around USD 145 million.

Bangladesh explores alternative sources for potato and onion imports

Traditionally, India has had strong trade ties with its neighbor, and Bangladesh serves as a key market for India’s textile and agricultural exports. India’s exports to Bangladesh rose from USD 3.2 billion in 2010-11 to a peak of USD 16.2 billion in 2021-22. However, trade between the two countries has declined following the interim government’s rise to power in Bangladesh.

The Bangladesh Trade and Tariff Commission (BTTC) has identified several potential alternative sources for potato and onion imports and has informed the country’s Ministry of Commerce. According to a report by Prothom Alo, discussions have also been held with importers regarding these alternatives.

The plan is to replace Indian potatoes with imports from Germany, Egypt, China, and Spain. Onions could be sourced from China, Pakistan, and Turkey. Salim Uddin, Secretary of the Ministry of Commerce, stated to Prothom Alo, “BTTC has identified alternative sources to stabilize the prices and supply of potatoes and onions. We will urge importers to consider these options.”

Potential alternatives and price projections

The Bangladesh Trade and Tariff Commission (BTTC) has provided estimated costs for importing potatoes and onions from alternative sources:

Potatoes:

• Germany: USD 250–500 per tonne
• Spain: USD 300–400 per tonne
• China: USD 550–700 per tonne
• Egypt: USD 750–800 per tonne

Onions:

• China: USD 430–650 per tonne
• Pakistan: USD 500–650 per tonne
• Turkey: USD 600–700 per tonne

Why is Bangladesh taking this step?

Officials have cited “rising prices of onions and potatoes in the Indian market” and “various decisions by Indian authorities to discourage exports” as the primary reasons behind this move. Bangladeshi officials have also pointed to the alleged price hikes as a significant factor. The BTTC has claimed a 10.59% monthly increase and an annual 131% surge in the prices of onions and potatoes.