Government imposes 40 percent duty on onion exports till December 31

The government has imposed a 40 percent export duty on onions with immediate effect. This fee has come into force from today itself and will remain in force till 31 December 2023. The government has issued a notification regarding this. It is believed that the price of onion may increase between Rs.50 to Rs.60 in September.

Aug 19, 2023 - 22:30
 0
Government imposes 40 percent duty on onion exports till December 31

The government has imposed a 40 percent export duty on onions with immediate effect. This fee has come into force with immediate effect and will remain in force till December 31, 2023. The government has issued a notification regarding this.

The Reserve Bank of India (RBI) has said in the bulletin that tomato prices may see a further rise in August. However, in recent data, there has been some decline in the prices of tomatoes. It has been assumed in many reports that onion prices may also see a jump in the month of September. The price of onion is likely to range from Rs 50 to Rs 60.

Many traders say that apart from a large share of poor-quality onions, high inflation in other vegetables is also responsible for driving up onion prices.

Last week, the government announced the immediate release of onions in October. The government will immediately release onions from the buffer stock. This decision has been taken to control the prices till the arrival of new crops.

In its report, the Reserve Bank of India (RBI) has cautioned the central government about the increase in the price of food items and said that this can lead to an increase in inflation by up to six percent. Inflation is already increasing due to the lack of availability of tomatoes as per requirement. In such a situation, if there was an increase in the price of onions, then it could have a direct impact on the middle class. However, there seems to be some success in controlling tomato prices in the recent past. Therefore, as a precautionary measure, the government is trying to maintain the availability of onions as well.

The government is exploring multiple channels for the distribution of onions. The onion will be sold in these channels. For discounts on onion, the government will offer e-auctions and discounts on e-commerce platforms and retail outlets along with consumer cooperatives. The government will also partner with the state authorities for this.

Due to the sharp jump in the prices of vegetables and cereals, there has been a rise in the rate of retail inflation. Last month, retail inflation has gone up to 7.44 percent. It has reached its highest level of 15 months. RBI's inflation band has crossed 2 percent to 6 percent for the first time in five months.

Muskan Kumawat Journalist & Writer