Price Hike of Onion: Customs detectives quiz 14 importers

The Customs Intelligence and Investigation Directorate (CIID) yesterday quizzed 14 onion importers to “gather information” on sales and stock of the cooking ingredient.

The move comes in the face of surging onion prices, which hit a record high of around Tk 250 per kilogram early last week, owing to a shortage of supply. 

The CIID, a field office under the National Board of Revenue (NBR), said it asked a total of 47 onion importers to appear in its office with information on the quantity of onions they sold, their proceeds from sales as well as names and addresses of the persons to whom the onions were sold.

Yesterday, a total of 14 importers, mainly from Chapainawabganj, Rajshahi, Bogura and Sathkhira, appeared before the CIID and rest 33 onion importers are expected to be questioned today.

It has summoned importers who imported over 1,000 tonnes of onions between August 2019 and November 18 this year, the CIID said. 

It, however, did not compile the total amount of onion imports by these 47 importers.

“We are trying to gather some information about where they have sold onions and the stock they have in hand. And we are getting their versions and once we complete doing so, we will be able to conclude whether they have sold at higher prices and how much supply they have. We expect the onion market [prices] will come to a tolerable level,” CIID Director General Shahidul Islam said while briefing reporters in his office.

The CIID top official said onions were being imported through planes. 

“We see that there are enough onions in the market. There is no shortage. Prices have gone up beyond an acceptable level. We call upon businesses so that they sell the bulb at bearable prices,” said Shahidul.

However, traders, for the last several weeks, have been maintaining that there was a shortage of supply, compared to the demand, because of falling stocks of domestically grown bulbs and declining imports. 

The CIID said 2.52 lakh tonnes of onions were imported during the July-October period of the current fiscal year. 

The Customs Intelligence did not give onion import figures between July-October of the previous year.

It said importers brought in 11.37 lakh tonnes of onions in the July-June period of the fiscal 2018-19.

Import data showed that average monthly imports fell by 33 percent to 63,000 tonnes this fiscal year from 94,750 tonnes in the previous one.

Yesterday, prices of onions rose further at retails with one trader in Farmgate area demanding Tk 260 for one kilogram of locally-grown onions.

Market prices data by state-run Trading Corporation of Bangladesh and Department of Agricultural Marketing (DAM) also showed that prices of the bulbs increased yesterday.

The CIID, in a letter to an importer issued on November 19, said it has received allegations that the importer illegally hoarded onions to create an “artificial crisis in the market”. 

“And there is also allegation against you regarding money laundering,” said the CIID letter.

CIID DG Shahidul replying to a question, said the CIID would take action if any specific allegation against anyone was proved to be true.

“After collecting their versions, we will be able to see if there was any violation of laws. We will also look into the stock they have at hand,” he said.

Replying to another question on whether supply chain in the markets fall under CIID’s jurisdiction, he said his office started working on the matter at the directive of the NBR chairman, as onions have become the talk of the town and various initiatives have been taken to stabilise the onion market.

“The extent of the onion crisis will reduce if we can identify those who have hoarded and did not sell after import,” he said.

“We are trying to find out whether they really sold at higher prices and how many days they kept the bulbs in hand. We hope we will get a positive result,” he said.

He added, “We will try to motivate them to release their stocks in the markets. All the departments are working together so that people get essential consumer goods easily and no artificial crises occur.”

Replying to whether there was any scope to take action against anyone for hoarding under the customs law, Shahidul said it would be valuable for all at this moment if we could provide actual information to the ministry concerned regarding the amount of stock big importers have now.

He said no panic should be created among traders due to summoning and questioning importers at the CIID office.

Md Abdul Awal, proprietor of M/S Bishal Enterprise, an importer in Chapainawabganj, had told reporters earlier that they submitted statements of their imports between August and November 18.

An onion wholesaler at Shyambazar, the main wholesale market of onions in Dhaka, said government actions such as imposing fines on traders and the authorities summoning them left onion traders worried. 

“We are businessmen, not thieves. What we have done? We have tried to make a profit. We also incur losses and no customer comes and offers extra to recoup those losses. The way we are being fined and summoned hurts our sentiments,” he said, seeking anonymity.

He added that the supply of onions at Shyambazar has been much lower than the demand in recent weeks.