DHAKA, Oct 20: Bangladesh authorities have waived import duties on onions in an effort to lower soaring prices of the vegetable, an essential ingredient in the local cuisine.

The government waived the 22.5 per cent tariff after onion prices jumped nearly 50 per cent in the past month to between 28 to 36 taka (50 to 60 cents) per kilogram (2.20 pounds).

“The government hopes that the measure would increase supplies and stabilize the market prices of onions,” a National Board of Revenue statement said on Monday.

Bangladeshis annually consume 550,000 tons of onions, but the country produces only 130,000 tons. Imports, mostly from neighbouring India, make up for the shortfall.

Wholesalers blamed the higher prices on a shortage caused by recent monsoon floods in Bangladesh and India, as well as higher transportation costs due to increased fuel prices.—APP