Onion import duty zero, more ordered
The government on Wednesday abolished the five per cent import duty on onions, ordered fresh imports and extended the ban on exports for an indefinite period even as retail prices of onions continued to be high — between `70 and `80 per kg. Aware of the repercussions that galloping onion prices can have on the government’s image,
the Prime Minister’s Office (PMO) is keeping a close watch on the situation, said sources. Not only has it directed the concerned ministries to “do whatever needs to be done” to check rising onion prices but has also asked them to ensure adequate availability of onions in the retail market. This includes directing a check on hoarding which, it is suspected, has fuelled the present price spiral. “Onion import has been liberalised and exports banned,” sources said.
Cabinet Secretary K.M. Chandrshekhar is monitoring onion prices on a daily basis with the help of the revenue, agriculture and consumer affairs secretaries. The Cabinet Secretary asked commerce secretary Rahul Khullar to speed up onion imports to meet the shortfall. Subsequently, the commerce ministry asked state trading agencies like MMTC, STC and PEC to import the vegetable. Khullar said instructions have been given to the three state trading firms to “look for where onion is available”. The government also abolished the four per cent countervailing duty on onions. However, experts said the move may not have much impact as, except Pakistan, there is no other country where prices of onions are less than in India. “It is only in Pakistan that prices of onions are slightly less than in India. I don’t see any other place where prices are less than in India,” said Mr Badruddin Khan, senior research analyst at Angel Commodities Broking. This means India will have to depend mainly on onion imports from Pakistan to cool down domestic prices, he said.
Post new comment