New Delhi:
More than 2G, it's perhaps onion prices that's making the government tear up at the moment; they've rocketed to as much as Rs 85 per kg in some markets forcing the government to remove customs duty on the import of onions which was earlier pegged at 5 per cent.
The government has already banned the export of onions, a move which saw wholesale prices of onions dip even though retail prices still remain high.
Hours after abolishing customs duty, the government today asked state trading agencies -- STC, MMTC and PEC -- to immediately go for onion imports to boost domestic supply in the wake of prices spiralling to Rs 70-80 a kg.
"I have asked STC, MMTC and PEC to explore the option of quick delivery of onion," Commerce Secretary Rahul Khullar told reporters here after his meeting with Cabinet Secretary K M Chandrasekar.
Khullar said apart from putting a complete ban on onion exports, the government has removed customs duty on the commodity.
"The DGFT has imposed a ban on onion exports until further orders. That means till we change that decision no onion can be exported. Anybody is free to import onions at zero duty," he said.
The Commerce Secretary said the state trading firms have been asked to "look around" for import contracts for quick delivery because "I need onion now" and not after six months.
The Cabinet Secretary, who is personally monitoring the situation, earlier in the day asked the commerce ministry to "speed up" onion imports to augment domestic availability.
The government's concerted action follows a steep rise in onion prices, which soared from Rs 10-11 in June to Rs 70-85 per kg in retail markets across the country.
The state-owned firms have to search for availability.
Khullar said that onion prices have shot up because of damage to the crop in the producing states (like Maharashtra) by unseasonal rains.
He said prices can be reined in only by the "entire package" of measures, including de-hoarding operations and no single step is adequate.
He conceded that the ban on exports and duty-free imports can partially "fill the gap" because almost 90 per cent of the demand is met by the domestic production.
In the normal weather conditions, the country annually produces 12-13 million tonnes of onion. Exports are only one-tenth of the production. While the ban on export can have a limited impact on the supply, "these things have salutary impact on the (price) sentiment".
When asked whether India is not sending signals of desperate supply situation by telling the companies to quickly search for onion, he said "you are free to make your judgment".
As for export ban, Khullar said that it is complete and "no onion can leave the port". It applies to all the traders, including those who had been issued clearances by the canalising agencies like NAFED.
Meanwhile, in a bid to provide succour to common man from heightened onion prices NAFED and NCCF have started selling at Rs 40 per kg through their 25 stores in the national capital, but the stocks were sold out in no time.
The government has already banned the export of onions, a move which saw wholesale prices of onions dip even though retail prices still remain high.
Hours after abolishing customs duty, the government today asked state trading agencies -- STC, MMTC and PEC -- to immediately go for onion imports to boost domestic supply in the wake of prices spiralling to Rs 70-80 a kg.
"I have asked STC, MMTC and PEC to explore the option of quick delivery of onion," Commerce Secretary Rahul Khullar told reporters here after his meeting with Cabinet Secretary K M Chandrasekar.
Khullar said apart from putting a complete ban on onion exports, the government has removed customs duty on the commodity.
"The DGFT has imposed a ban on onion exports until further orders. That means till we change that decision no onion can be exported. Anybody is free to import onions at zero duty," he said.
The Commerce Secretary said the state trading firms have been asked to "look around" for import contracts for quick delivery because "I need onion now" and not after six months.
The Cabinet Secretary, who is personally monitoring the situation, earlier in the day asked the commerce ministry to "speed up" onion imports to augment domestic availability.
The government's concerted action follows a steep rise in onion prices, which soared from Rs 10-11 in June to Rs 70-85 per kg in retail markets across the country.
The state-owned firms have to search for availability.
Khullar said that onion prices have shot up because of damage to the crop in the producing states (like Maharashtra) by unseasonal rains.
He said prices can be reined in only by the "entire package" of measures, including de-hoarding operations and no single step is adequate.
He conceded that the ban on exports and duty-free imports can partially "fill the gap" because almost 90 per cent of the demand is met by the domestic production.
In the normal weather conditions, the country annually produces 12-13 million tonnes of onion. Exports are only one-tenth of the production. While the ban on export can have a limited impact on the supply, "these things have salutary impact on the (price) sentiment".
When asked whether India is not sending signals of desperate supply situation by telling the companies to quickly search for onion, he said "you are free to make your judgment".
As for export ban, Khullar said that it is complete and "no onion can leave the port". It applies to all the traders, including those who had been issued clearances by the canalising agencies like NAFED.
Meanwhile, in a bid to provide succour to common man from heightened onion prices NAFED and NCCF have started selling at Rs 40 per kg through their 25 stores in the national capital, but the stocks were sold out in no time.
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