Regular Update
ATM News Network: In a significant development aimed at bolstering onion exports, the government has announced an exemption from export duty for 'Bangalore Rose' onions, subject to specific conditions. This decision comes as part of a series of measures taken to regulate onion prices and enhance domestic availability.
Previously, in August, the government had imposed a 40% duty on the export of all onion varieties to address rising local market prices and ensure an adequate supply of onions within the country. This move was made in response to India's consumer price index (CPI)-based inflation, which had surged to 7.44% in July, surpassing the Reserve Bank of India's (RBI) upper tolerance limit of 6%. The inflationary pressures were predominantly driven by escalating food and vegetable prices.
According to data from the Consumer Affairs Department, the average price of onions in the country currently stands at Rs 33.53. Despite the government's proactive efforts to maintain a sufficient onion buffer stock, the quality of a substantial portion of the onions has been compromised due to prolonged exposure to excessive summer heat. Consequently, good-quality onions have become relatively more expensive.
To benefit from the export duty exemption for 'Bangalore Rose' onions, exporters are required to provide a certificate from the state horticulture commissioner, confirming the product's identity and the quantity slated for export.
This strategic move aims to support onion growers and exporters while maintaining price stability in the local market. As India grapples with inflationary pressures and strives to balance domestic and international demand for onions, the government remains committed to implementing measures that benefit all stakeholders in the onion industry.
