The government on Saturday imposed an export duty of 40 per cent on onions with immediate effect to check price rise and improve supplies in the domestic market. This export duty is valid till December 31, 2023. The export duty comes amid reports that onion prices are likely to rise in September.
Last week, the government announced the immediate release of onions from its buffer stock in specific regions, 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.
Presently, the government has stockpiled 3 lakh tonnes of onions within the Price Stabilisation Fund (PSF) to address any unforeseen spikes in prices during the period of low supply.
According to government data, the cost of onions has begun to exhibit a slight increase. As of August 10, the all-India retail price for this essential kitchen commodity stood at Rs 27.90 per kilogram, representing a rise of just over Rs 2 per kilogram compared to the same period last year.
Apart from market disposal, it has also decided to offer state governments at discounted rates for sale through retail outlets of their consumer cooperatives and corporations.
In the 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 added.
NAFED and NCCF had procured 1.50 lakh tonnes each of rabi onion during June and July from Maharashtra and Madhya Pradesh. This year, irradiation of onion had also been taken up on pilot basis in collaboration with Bhabha Atomic Research Centre (BARC) with the objective of minimizing storage loss. About 1,000 tonnes had been irradiated and stored in controlled atmosphere storage.
(With PTI inputs)
