Export duty on onion: A timely move to boost domestic supply, says Govt

The government on Monday said the decision to impose a 40 per cent export duty on onions was not a “premature” but a timely move to boost domestic supply and control retail prices.
The statement comes amid farmers’ protest at several places in Nashik district in Maharashtra against the 40 per cent duty imposed on onion exports. Traders are also against the imposition of the duty. “It is not a premature decision to impose export duty on onion. It is a timely decision taken to increase the domestic availability and check prices,” Union Consumer Affairs Secretary Rohit Kumar Singh said. Till the situation demands, Singh said the government will intervene with release of buffer onions in both the wholesale and retail markets in select states. On Saturday, the Centre imposed a 40 per cent duty on the export of onions amid signs of price rise as well as increase in outward shipments. The decision to impose export duty on onions for the first time ever is also aimed to curbing prices of the kitchen staple ahead of the festive season.