(Image source from: Hindustantimes.com)

National politics heated up with onion export duty. Onion prices was about create more havoc than tomatoes as onion is an essential commodity, the Narendra Modi government has decided to procure onions and imposed a tax to bring down the prices of onions. The central government took a decision to impose a 40 per cent export duty on onions.

The Maharashtra government has requested the central government for the same and the government has decided to take 2 lakh metric tonnes of onions at the rate of Rs 2,410 per quintal. After opposition parties slashed the central government, they started procuring for Rs 24 per kg. The Maharashtra government has already started buying onions.

Even with the huge demand, onion prices have come down after the tax was imposed. Government buying onions for Rs 24 per kg is a huge relief for farmers, said Nandkumar Shikre, Chairman, Onion Traders Association, Ahmednagar. After the ban on wheat and rice exports, the onion trade sector has come out with an appeal to the government to establish a minimum price, but the central government has come out with a shocking hike of 40 per cent export duty.

The export ban and the export duty hike are showing a huge effect on traders and investors.