Govt allays export duty fear, to buy additional 2L tonnes of onion

New Delhi, August 22

The government today tried to dispel the impression that the 40 per cent duty slapped on the onion export was an anti-farmer move.

Asking the farmers not to worry, Consumer Affairs Minister Piyush Goyal said the Centre had restarted procurement of onions at the rate of Rs 2,410 per quintal for its buffer stock which had been raised from three lakh tonnes to five lakh tonnes.

No distress sale

The export duty will protect consumers’ interest, while the decision to purchase an additional 2 lakh tonnes of onion will prevent any distress sale by farmers.

Piyush Goyal, Union Minister

The onion issue has become a hot potato after the government announced a 40 per cent duty on its exports. Following protests by farmers in Nashik and elsewhere, it announced the procurement of an additional two lakh tonnes of onions. Onion is a major cash crop in Madhya Pradesh which will soon go to the polls.

Govt rate Rs 25/kg

The government has started releasing onions in buffer stock in a few retail markets of Delhi-NCR at Rs 25/kg

Speaking at a press conference, Goyal alleged that some “political opponents” were creating a “wrong picture” about the export duty. Farmers are concerned because about 10 lakh tonnes of onion is exported every season. However, the hike in the buffer stock by two lakh tonnes will partially mitigate the loss in exports.

“The policy of the government is neither beneficial to farmers nor consumers. Whenever there is a chance for farmers to earn a little more money, the government either imposes export duty or bans exports,” said an editorial in ‘Saamana’, the mouthpiece of the Shiv Sena (UBT).

Goyal said the export duty would protect consumers’ interest, while the decision to purchase an additional 2 lakh tonnes of onion would prevent any distress sale by farmers. He also held out the hope of further increasing the buffer stock, if the need arose. “Both consumers and farmers are important for us. The government has been taking decisions in the interest of both,” he said.

The government has started releasing onions in the buffer stock through National Cooperative Consumers’ Federation of India Limited and National Agricultural Cooperative Marketing Federation of India Ltd in a few retail markets of Delhi-NCR at the subsidised rate of Rs 25 per kg.