India takes steps to curb soaring onion prices amidst inflation surge | Fusion - WeRIndia

Inflation in India surged to 7.44% in July. It surpassed the Reserve Bank of India’s upper limit of 6%, primarily fueled by elevated food and vegetable costs.

In light of this, the government has undertaken decisive measures to tackle the soaring prices of onions, a staple in Indian cuisine, particularly crucial as the festival season approaches.

To counter the looming threat of triple-digit onion prices, the National Cooperative Consumers’ Federation of India Limited (NCCF) will offer subsidized onions at ₹25 per kg commencing this Monday.

NCCF plans to sell onions through retail outlets and mobile vans. Recognizing the urgency, the government imposed a 40% duty on onion exports on Saturday. The move is aimed at bolstering domestic supplies and reining in inflation during the festive period.

The administration is set to release onions from its buffer stock of 300,000 tonnes, ensuring a controlled supply.

The Ministry of Consumer Affairs has directed NCCF and NAFED to procure an additional 100,000 tonnes of onions each, augmenting the procurement efforts and ensuring steady distribution in key consumption hubs.

The strategic move to tap into the buffer stock, established under the price stabilization fund, underscores the government’s commitment to cooling down onion prices amidst the broader backdrop of escalating vegetable expenses.

Currently, around 1,400 tonnes of onions have been dispatched to states and Union Territories where retail prices have surged above the national average or experienced substantial month-on-month increments.

Furthermore, the Central Board of Indirect Taxes and Customs (CBIC) has responded with a resolute decision by imposing a 40% customs duty on onion exports.

This measure, effective until December 31, 2023, has been enacted in the public interest, as indicated by CBIC.

The move aligns with the government’s broader strategy of employing trade-related interventions to tackle inflation.

This approach builds on prior measures that included restrictions on wheat and rice exports, as well as a reduction in import duties on edible oils.

As India grapples with inflationary pressures, these proactive steps to stabilize onion prices and enhance domestic supplies highlight the government’s dedication to safeguarding consumers’ interests and maintaining economic stability.

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