Onion Price Hike: The export duty, which is the first time ever on onion, has been imposed as the retail sale price of the kitchen staple, according to government data, touched Rs 37/kg on Saturday in Delhi.
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The Central government on Saturday imposed a 40 per cent duty on the export of onion to check the surge in price and improve its availability in the domestic market. Issuing a notification, the Union Finance Ministry ordered the imposition of a 40 per cent export duty on onions till December 31, 2023.
The export duty, which is the first time ever on onion, has been imposed as the retail sale price of the kitchen staple, according to government data, touched Rs 37/kg on Saturday in Delhi. There are reports that onion prices are likely to rise in September.
The top three importing countries in value terms are Bangladesh, Malaysia, and the UAE. News agency PTI quoted Consumer Affairs Secretary Rohit Kumar Singh as saying that the decision was taken in order to increase the availability of onions in the domestic market, especially in view of the upcoming festival season.
The government had always used a minimum export price tool to curb onion exports. However, for the first time this year, export duty has been slapped for effective control of the outward shipment.
On August 11, the government announced it will release onion from its buffer stock in the targeted regions with immediate effect to ensure prices remain under check till the new crop arrives from October onwards.
The government is exploring multiple options for disposal of onion: e-auction, e-commerce as well as through states at discounted rates via retail outlets of their consumer cooperatives and corporations, it had said.
The government has currently maintained 3 lakh tonnes of onion under the Price Stabilisation Fund (PSF) to meet any exigencies, if rates go up significantly during the lean supply season.
As per the government data, onion prices have started inching up slightly as all-India retail price of the key kitchen staple was available at Rs 27.90 per kilogramme on August 10, higher by a little over Rs 2 per kg in the year-ago period.
In current year, a total of three lakh metric tonnes of onion has been procured for the buffer, which could be enhanced further, if situation demands, it had added.
NAFED and NCCF had procured 1.50 lakh tonnes each of rabi onion during June and July from Maharashtra and Madhya Pradesh.
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Rabi onion harvested during April-June accounts for 65 per cent of India’s onion production and meets consumers’ demand till the kharif crop is harvested in October-November.
