Big Onions: Govt. to buy at Rs.130 and sell at Rs.100 a kilo

The government will purchase big onions directly from farmers at Rs.130 a kilogramme through the SATHOSA retail chain and sell them at Rs. 100, Trade Minister Bandula Gunawardane said.

Minister Gunawardane told the Daily Mirror it would be done to redress the grievances of local farmers who would otherwise be affected by the tax reduction on imports of big onions. He said big onions would be sold at SATHOSA outlets at Rs.100 a kilo.

“The government will absorb the loss of Rs.30 a kilogramme,” he said.

The government reduced the import taxes on big onions, dhal, sugar and canned fish on Tuesday.

The Essential Food Commodities Importers and Traders’ Association said big onion prices had shot up in the world market making it difficult to keep the local retail price at Rs.100 a kilo.

Association President G. Rajendran said India had restricted exports of their crop, and therefore Sri Lankan importers had to count on supplies from countries such as Iran, Egypt and the Netherlands.

“The landing cost is Rs.120 a kilogramme. Then, it is difficult to keep it at Rs.100 a kilo in the retail market,” he said.

Sri Lanka needs 10,000 tonnes of big onions for a month. A part of it is supplied through the local crop for a few months of the year during the season.

However, dhal could be provided at the government’s stipulated price.(Kelum Bandara)