Government lifts customs duty on onion import

In an effort to contain skyrocketing onion prices, the Union Government on Wednesday lifted the customs duty on import, according to Finance Secretary Ashok Chawala.

He said the customs duty on onion had been brought down to zero from 5 per cent and hoped this would alleviate the crisis of the commodity in the market.

Onion prices, which were some Rs 15/16 in September, went upto Rs 80/90 a kilo now in retail markets across India.

The prices went double in a matter of a week from Rs 40 to Rs 80 in markets.

The Government’s action to lift customs import on onion comes after sharp criticism from all sectors and contradictory statements between the two central ministers on crisis of the commodity.

Agriculture Minister Sharad Pawar said the prices of the commodity would stay for three more weeks due to low outputs from producing states like Maharashtra,Gujarat and southern states for excessive rains, while Commerce Minister Anand Sharma believe that hoarding was the reason for artificial crisis and hike of the prices.

The Government also banned export of onion till Jan 15.