As the prices of onion skyrocketed in the last couple of months, Union Agriculture Minister Shivraj Singh Chouhan on Sunday spoke about the reason for such a rise. Chouhan said that the prices of onion saw a spike because the export ban on onion was lifted by the government.
Moreover, the export duty on onion has also been reduced from 40 per cent to 20 per cent due to which the prices increased in the domestic market. Notably, In December 2023, the government imposed a ban on onion export citing the potential shortage of kitchen staples due to weak monsoon. This ban was further extended in March 2024. However, in May this year, the government lifted the export ban but put some restrictions.
According to the May order, the government imposed a Minimum Export Price (MEP) of $555 to ensure that onions would not be exported at a lower price. Additionally, an export duty of 40 per cent was also imposed. Later in September, the government slashed the export budget by 40 per cent by half and exempted the export from MEP.
The decision of the ban, as per the government, was taken to tackle the domestic demand which could have been affected due to weak monsoon. However, the concessions in export and the lift in ban later were done to protect the interests of the farmers.
Shivraj Singh Chouhan on soybean
The agriculture minister also said that palm oil was imported from Malaysia, and Indonesia at zero per cent duty, which affected the soybean farmers. He said that the Centre imposed an import duty of 27.5 per cent so that farmers could get a fair price for soybeans. The MSP of soybeans is Rs 4,892, the central government has permitted the Maharashtra government to buy soybeans at MSP, Chouhan said. It has been decided to increase the moisture limit in soybeans from 12% to 15%. Orders have been issued so that there is no problem in buying soybeans in Maharashtra, he added.
(With inputs from agencies)
