Monday, 15 July 2013 00:30
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The Government on Friday doubled the import duty on onions from Rs. 15 per kilo to Rs. 30 per kilo, with a view to giving a boost to local production but the hike may hit India as most of the onions coming into the country are from India.
“We get about 6,000 MTs per month from India,” Palaniyandi Sundaram, President of the Colombo Traders’ Association, told Express. At Rs. 50 per kilo, imports are of the order of Rs. 300 million ($ 2.3 million). The new duty would result in an increase in the retail price of imported onions but it could not be an uncompetitive price.
“Instead of charging Rs. 75 or 85 per kilo as at present, we’ll charge Rs. 90 or 95 per kilo. But if the circumstances warrant, we’ll have to stop imports,” he said. “Past experience tells us that local production is never enough to meet the demand and meet it right through the year. In Lanka, onion production is seasonal. In two or three months, the Government will have to facilitate imports by bringing down the duty,” he said. (New Indian Express)
