The central government has imposed restrictions on the export of onions from the country. The government has taken this step to ensure the availability of onion in the domestic market and to keep its prices under control. Under this, a heavy duty of 40 percent has been imposed on the export of onions, which is going to be effective till the end of this year.
The duty will be applicable till the end of the year
The central government issued a notification on Saturday evening regarding the duty imposed on the export of onions. The notification said that the government has decided to impose 40 per cent duty on onion exports till December 31, 2023.
Predicted
The government has This ban has been imposed on the export of onions at a time when there were apprehensions that prices of onions would skyrocket after tomatoes. It was being said that from September the prices of onions will start rising and will give new shocks of inflation to the common people. In view of this apprehension, it was already estimated that the government may take measures to ban the export of onions. This will help in ensuring that its availability remains in the domestic market. With adequate availability in the domestic market, there will be less risk of onion prices going out of control. Apart from this, the government is also going to release onions from the buffer stock to ensure domestic supply. Due to this, inflation has started increasing again after May. In July, the rate of retail inflation had crossed 7 per cent after several months. Recently, the Reserve Bank has expressed apprehension in its bulletin that retail inflation may exceed 6 per cent in the September quarter, which is its upper limit.
Tomato is being considered especially responsible for this changed trend of inflation, whose retail prices had reached Rs 200-250 per kg in most cities of the country. Tomato prices have softened somewhat in recent weeks.
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