Centre slaps 40 per cent export duty on onions to contain price rise
NEW DELHI,AUG 20: In a bid to keep onion prices from flying over the roof, the Centre on Saturday imposed a 40 per cent duty on their export with immediate effect. The duty will remain in force till December 31.
The announcement comes ahead of Assembly elections in five states later this year and general elections next year. The government had imposed an export ban on certain categories of rice a few weeks ago, again with polls in mind.
Saturday’s levy is expected to increase the availability of onions in the domestic market, especially in view of the upcoming festival season. It also comes amid concerns that onion prices may increase sharply in September.
The Centre had recently ordered the immediate release of onions from its buffer stock in some regions to keep prices under leash till the fresh crop starts arriving in the market in October.
Currently, the government has stockpiled 3 lakh tonnes of onions within the Price Stabilisation Fund to address any unforeseen price spikes at times of low supply.
The national average retail price of onion was Rs 30.50 per kg on August 18. But in some places, the prices were above Rs 50.
In Delhi, the average onion price on August 18 was Rs 35 per kg, Rs 7 higher than the price a year ago. India exported USD 576.79 million worth of onions in 2022- 23.
In April-June of the financial year 2024, it exported 6.3 lakh metric tonnes of onions amounting to USD 120.71 million.
Retail inflation shot up to 7.44 per cent in July compared to 4.9 per cent in June.
The surge in inflation was caused by a substantial increase in vegetable prices, which saw a 38 per cent month-on-month and 37 per cent year-on-year increase.
-The New Indian Express
