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Ban on onion export lifted amid elections, ‘export duty’ introduced to control prices

Img Onion Prices Down 2 1 J7cftoOnion Export: Amidst the Lok Sabha elections, the government removed the ban on export of onion. The government on Saturday ended the ban on export of onion. The government removed this ban with immediate effect, although the minimum export price for this has been kept at $ 550 i.e. about Rs 45,800 per metric ton. This means that the price of onion to be exported must be at least Rs 45,800 per metric ton. Along with this, the government has also decided to impose 40% export duty on onion export.   

ban on export lifted

While farmers are likely to get good prices due to the lifting of the ban on exports, a question is being raised in the minds of consumers that there is a danger of onion prices increasing due to this. Amidst the continuous increase in onion prices, the government had banned its export on December 8, 2023. Now that a good onion crop is expected, the government has decided to open up exports. Onion consumption in the country is about 17 lakh tonnes per month. In view of the good harvest and the convenience of storing onions for a long time, the government decided to remove the ban on export. The government hopes that due to this decision there is no risk of retail prices rising significantly. 

These factors will keep onion prices under control  

This time the government is preparing to create a buffer stock of 5 lakh tonnes. In such a situation, buffer stock will be helpful in dealing with the rise in retail prices. At the same time, the ban on export duty will also keep onion prices under control. Actually, the government has decided to impose 40 percent export duty tax on the export of onion. That means, if a farmer exports onion worth Rs 1 lakh, he will have to pay tax of Rs 40 thousand. In such a situation, instead of exporting onion, traders will sell it within the country. This decision of the government will help in maintaining the price as per the demand. The aim of the government is to keep the retail prices of onion under control till the arrival of the new crop.