Govt. reduces import tax on big onions to keep prices low

Wednesday, 2 October 2019 00:00 - - {{hitsCtrl.values.hits}}

The import tax on big onions has been reduced to provide relief to the public, the Chairman of the Cost of Living Committee Minister of Agriculture, Irrigation, Rural Economic and Fisheries and Aquatic Resources Development, P. Harrison said.

The Cost of Living Committee has decided to reduce the special commodity levy on imported big onions by Rs. 39 per kilogram effective from midnight Tuesday, 01 October.

The decision was taken to avoid the inconvenience caused to consumers by increasing the price of a kilogram of big onion in the market, the Minister said.

The wholesale price of a kilogram of local big onion in the local market has increased from Rs. 250 to Rs. 300 due to the raise imposed in import levy by Rs. 40 per kilogram in order to protect the local farmer and also due to India banning onion exports in a bid to control prices, which have increased in the domestic market

According to reports of the Department of Agriculture, 75% of the local big onion harvest has been reaped. The Cost of Living Committee expects the price of a kilogram of big onion to fall between 50 and 70 percent with the reduction of the import tax. The Committee said importers have the opportunity to import big onions from countries such as Egypt and Pakistan in the future.