The center on Saturday imposed a 40% tax on onion exports until December 31 in an attempt to curb price increases in the domestic market, the PTI news agency said citing a notice from the government.
"The government imposes a customs duty of 40 percent on exported onions until December 31," the statement issued by the government said.
The export tax hike comes as onion prices are expected to rise in September.
Last week, the government announced the immediate release of onions from stockpiles in specific areas, to control onion prices until the new harvest in October.
The government is exploring various channels for onion distribution, including online auctions, e-commerce platforms, and partnerships with state agencies to reduce prices at their retail stores due to consumer cooperatives and operating corporations. Currently, the government has stockpiled 300,000 tonnes of onions in the Price Stabilization Fund (PSF) to deal with any unexpected price spikes during periods of low supply.
According to government data, onion prices have begun to rise slightly. As of August 10, the retail price across India of this kitchen essential is Rs 27.9/kg, up more than Rs 2/kg from the same period last year.
Earlier, the National Cooperative Consumer Federation of India (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED) also purchased 1.5 lakh tonnes each from Maharashtra and Madhya. Pradesh.
Furthermore, to extend the shelf life of onions, the government has started irradiation with the help of Bhabha Atomic Research Center (BARC) on a pilot basis. According to data from the Department of Consumer Affairs, the annual amount of onion cushions has increased from 10,000 tons in 2020-21 to 30,000 tons in 2023-24 due to the purchase of onions in the Rabi season for distribution in regions that consume more during the lean season.
"The onion buffer has played an important role in ensuring the supply of onions to consumers at an affordable price and maintaining price stability," a statement from the Department of Consumer Affairs said. used to tell.
India gets almost 65% of its onion supply from the Rabi crop, which is harvested from April to June and meets consumer demand until the Kharif crop is harvested in October-November.
