To stop price increases and boost supplies on the domestic market through December 31, 2023, the government on Saturday placed a 40% levy on the export of onions. The Finance Ministry said earlier today that they have increased the export tariff on onions by 40% through December 31, 2023.
The Ministry announced: “Government imposes a 40% duty on onion exports until December 31.”
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The export tax was announced in the midst of reports predicting an increase in onion prices in September. The federal government began distributing the basic vegetable from its buffer stock earlier on August 11.
The central government had already planned to keep a buffer stock of 3 lakh tonnes of onions for the 2023–24 growing season. The government had a buffer reserve of 2.51 lakh tonnes of onions in 2022–2023. When supplies are scarce, buffer stock is kept on hand to cover any needs and to stabilise prices if they rise dramatically.
The Managing Directors of the government’s agricultural marketing organisations, National Agricultural Cooperative Marketing Federation of India (NAFED) and National Cooperative Consumers’ Federation of India Limited (NCCF), met with Rohit Kumar Singh, Secretary Food and Public Distribution Department, on Thursday to finalise the disposal procedures.
The decision was made to release the onion stocks by focusing on major markets in states or regions where retail prices are higher than the national average and where the rates of price growth over the previous month and year are higher than the threshold level. A Friday news statement from the food ministry stated that e-auction disposal and retail sales on e-commerce platforms were also being investigated.
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The 60% of India’s onion production that is harvested during the Rabi season, which runs from April to June, satisfies consumer demand until the Kharif crop is harvested in October or November.
During the lean supply season, the purchased inventories are typically issued through targeted open market sales as well as to states, Union territories, and government agencies for supplies through retail outlets.
