The government placed a 40% levy on onion exports on Saturday in order to keep prices stable and supplies adequate in the domestic market until December 31, 2023.
The Finance Ministry said earlier today that they have slapped a 40% export duty on onions until December 31, 2023. “Government imposes 40 per cent duty on onion exports till December 31,” the Ministry stated.
The export duty comes as rumors suggest that onion prices may climb in September.
The federal government began releasing the basic vegetable from its buffer supply on August 11.
The central government had already planned to keep 3 lakh tonnes of onions on hand as a buffer stock for the 2023-24 season. The government kept 2.51 lakh tonnes of onion as buffer stock in 2022-23.
If rates rise dramatically during the low supply season, a buffer stock is kept on hand to meet any emergencies and to keep prices stable.
In a meeting on Thursday with the Managing Directors of the government’s agricultural marketing agencies, National Agricultural Cooperative Marketing Federation of India (NAFED) and National Cooperative Consumers’ Federation of India Limited (NCCF), Rohit Kumar Singh, Secretary Food and Public Distribution Department, finalized the disposal modalities.
“It was decided to release the onion stocks by targeting key markets in states or regions where retail prices are ruling above the all-India average and also where the rates of increase in prices over the previous month and year are above the threshold level.
“Disposal through e-auction and retail sales on e-commerce platforms are also being explored,” a food ministry release said Friday.
