The central bank has set the letter of credit (LC) margin for onion import at 9 percent in a bid to control the soaring prices.
In a notification issued to all the banks on Wednesday (Oct 2), Bangladesh Bank said that onion prices are soaring due to the price hike in international market.
In order ensure adequate supply and control the soaring prices the banks have been told to keep the LC margin at 9 percent till Dec 31.
Onion prices soared since India announced on Sept 29 that they will stop onion export on account of the damages caused by flood.
Following the announcement, the Trading Corporation of Bangladesh (TCB) started sale of onion at Tk 45 per kg from Tuesday (Oct 1).
The government is also importing onions from Myanmar and Turkey to keep the supply running and control the market.
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