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Onion Prices May Not Rise As Anticipated As Centre Curbs Exports With Big Move
The export duty comes amid reports that onion prices are likely to rise in September.
Highlights
- The government on Saturday imposed a 40 percent duty on the export of onions.
- The export duty on onions is imposed till December 31, 2023.
- The export duty comes amid reports that onion prices are likely to rise in September.
New Delhi: The government on Saturday imposed a 40 percent duty on the export of onions to check the price rise and improve supplies in the domestic market till December 31, 2023. Earlier today, the Finance Ministry issued a notification stating that they have imposed a 40 percent export duty on onions till December 31, 2023.
"Government imposes 40 percent duty on onion exports till December 31," the Ministry stated. The export duty comes amid reports that onion prices are likely to rise in September. (Also Read: SHOCKING Revelation: Is ChatGPT Politically Biased? Study Claims ALARMING Results)
Earlier on August 11, the central government started releasing the staple vegetable from its buffer stock. The central government had earlier decided it will maintain 3 lakh tonne of onions in the 2023-24 season as buffer stock. In 2022-23, the government maintained 2.51 lakh tonne onion as buffer stock. (Also Read: From Billions To Burdens: Tale Of A Workaholic Who Has Rs 8200 Crore Net Worth, 1200 Acres Land But Took His Life Due To Debt)
Buffer stock is maintained to meet any exigencies and for price stabilisation, if rates go up significantly during the lean supply season. Rohit Kumar Singh, Secretary Food and Public Distribution Department in a meeting on Thursday with the Managing Directors of the government’s agricultural marketing agencies -- National Agricultural Cooperative Marketing Federation of India (NAFED) and National Cooperative Consumers' Federation of India Limited (NCCF) -- finalized the modalities for disposal.
“It was decided to release the onion stocks by targeting key markets in states or regions where retail prices are ruling above the all-India average and also where the rates of increase in prices over the previous month and year are above the threshold level. Disposal through e-auction and retail sales on e-commerce platforms are also being explored,” a food ministry release said Friday.
Rabi onion harvested during April - June accounts for 65 percent of India's onion production and meets the consumer's demand till the Kharif crop is harvested in October-November.
The procured stocks are usually released through targeted open market sales and also to states and Union territories and government agencies for supplies through retail outlets during the lean supply season.