In a bid to counter rising onion prices and enhance domestic supplies, the government has announced a 40% duty on onion exports until December 31, 2023. The move comes as a preventive measure against anticipated price hikes in the coming months.
The Finance Ministry, earlier today, issued a notification confirming the imposition of a 40% export duty on onions. “Government imposes 40% duty on onion exports till December 31,” stated the Ministry, outlining the new regulation.
This decision comes as concerns mount over potential increases in onion prices, particularly expected to be noticeable in September. To address this, the central government initiated the release of onions from its buffer stock on August 11.
During a recent meeting, Rohit Kumar Singh, Secretary of the Food and Public Distribution Department, along with the Managing Directors of the government’s agricultural marketing agencies, namely the National Agricultural Cooperative Marketing Federation of India (NAFED) and the National Cooperative Consumers’ Federation of India Limited (NCCF), finalized the operational strategies.
The plan involves targeted dissemination of onion stocks to markets where retail prices surpass the national average. Markets experiencing significant price escalation over the previous month and year are of particular focus. The release process includes options like e-auctions and retail sales through e-commerce platforms.
Significantly, the buffer stock of onions is maintained to ensure preparedness for emergencies and to stabilize prices during periods of low supply. In this context, it’s noteworthy that India’s onion production during April to June, referred to as the Rabi onion harvest, constitutes around 65% of the country’s total output and caters to consumer demand until the Kharif crop is harvested between October and November.
Historically, procured onion stocks are channeled through targeted open market sales, supplying states, Union territories, and government agencies to maintain a consistent flow of onions during times of scarcity. This recent policy measure is aligned with the government’s efforts to manage onion prices and safeguard consumer interests.
