look news india
New Delhi: The Central Government is selling more onions from the buffer stock in the wholesale market to keep the prices of onion under control in the upcoming festive season.
The government last week decided to remove the minimum export price of $550 per tonne on onions. The removal of this limit has increased the demand for Indian onions in the export market and has pushed up domestic prices.
After the government's decision, the price of onion in cities like Mumbai and Delhi has increased to Rs 55 to Rs 60 per kg.
It is expected that the demand for Indian onions will increase in foreign countries as the customs duty on onions has been reduced from 40% to 20%. It is believed that this decision of the government has come in view of the assembly elections to be held in Maharashtra in the current year after Haryana and Jammu and Kashmir. The government does not want onions to become expensive during the festive season apart from the elections.
Nashik district of Maharashtra produces the largest onion crop in the country. Consumer Affairs Secretary Nidhi Khare said in a statement that the government has increased the supply of onions from the buffer stock to make onions available at a cheaper rate across the country. Onion prices have recently increased in major cities including Delhi and Mumbai.