The decision of the Centre to impose a 40% export duty on onions, is a both a timely and laudable step that will ease the burden on the common man, after the retail price of onions have shot up by 20%, with prices hovering around Rs 40/kg. It is also a timely measure to boost domestic supplies and bring down onion prices , although it has ruffled the feathers of a few farmers and traders from Maharashtra who fear a 50% drop in onion exports. Secondly, augmenting buffer stocks by 2 lakh tonnes for this financial year will help to ease the availability of onions when prices spiral out of control and there is an artificial shortage created for this essential daily cooking requirement in almost every household. It is hoped a similar plan can be put in place to make tomatoes available at an affordable price after the recent unprecedented spurt in prices to around Rs150-200 per kg.
