Centre decides to import 10 lakh tonnes of potatoes to check rising prices

To curb the rising food prices, the Union Government decided to import 10 lakh tonnes of potatoes to stem rising prices. The government will be importing 30,000 tonnes of potato from Bhutan without a license. The retail price of potato has been running above Rs 40 per kilogram across most states in India.

Minister of Consumer Affairs, Food and Public Distribution Piyush Goyal said that the government is taking active steps to moderate inflating potato prices. The minister informed that import duty on potato has been reduced to 10 per cent from 30 per cent earlier. Now, the quota of 10 Lakh Metric Tonnes of potato will be imported at 10 per cent import duty till January 31, 2021.

For pulses, Goyal said the time limit for import of tur under import quota of 4 lakh tonne for FY21 has been extended till December 31, 2020, while import of urad under the already issued import quota of 1.5 lakh tonne expedited. Government is also supplying moong, tur and urad to states from the buffer stock making a retail intervention to reduce prices. Goyal said in the next 15 days, 2 lakh tonnes of tur from the buffer will be disposed of through open market sale.

He added, that the government has also decided to extend the memorandum of understanding (MoU) with Mozambique for import of 2 lakh tonne of tur for another five years and is in the process of signing an MoU with Myanmar for five years to import 2.5 lakh tonne of urad.

The Centre has also planned to import 25,000 tonnes of onions before Diwali. This will be in addition to the 7,000 tonnes of onions that NAFED has already procured through private importers. Government has also invoked the Essential Commodities Act setting onion stock limits at 25 tonnes for wholesalers and 2 tonnes for retailers starting 23 October.

Earlier on Thursday, the government banned exports of onion seeds with immediate effect. In a notification Directorate, General of Foreign Trade (DGFT) announced about prohibiting the export of onion seeds. Earlier, the export of onion seeds was in the restricted category.

Commerce Minister Piyush Goyal said, ensuring the availability of onion at affordable prices for consumers, Government under Prime Minister Narendra Modi has banned the export of onion seeds.