Onion’s imbroglio

This refers to the news report ‘Onion exporters seek removal of 20% export duty, urge for stable policy framework’ (September 27). While there seems to be nothing wrong with ushering in of a stable long-term onion export policy that allows farmers to sell their produce at fair prices but the complete withdrawal of the 20 per cent export duty may possibly result in substantial shortage at the domestic front.

Mind you, this staple food item is already selling ₹60/kg in the retail markets which may get further escalated if its supply gets more ‘export oriented’.

There should be some ‘level playing’ field between the onion exporters and those supplying it to the domestic market. Neither of them must be impacted by ‘unstable’ government policy.

Kumar Gupt

Panchkula (Haryana)

Deposit worries

The article on bank deposits (September 27) makes a good analysis. Good domestic savings provide a good foundation for economic growth. But condition is India is not encouraging.

Household savings is declining in the background of declining expenses. Wages have not increased for a long period and the real wage is declining fast due to inflation. Demand is still constrained possibly by falling consumer spending, while schemes are focussing more on the supply side.

Moreover the interest rates are also not attractive for depositors. There needs to be a concerted effort to increase bank deposits.

AG Rajmohan

Anantapur

Depositors and DICGC

Apropos “Banks’ dilemma over deposit mobilization” (September 27). In reality there is a dilemma in the minds of FD holders as the risk coverage on deposits is irrationally limited to ₹5 lakhs.

Secondly, DICGC demands this amount to be recovered from depositors and repaid subsequently as seen from the recent Guru Raghavendra Co-op bank scam in Karnataka. The Finance Ministry must now contemplate over 100 per cent risk coverage of deposits as suggested by RBI deputy governor recently. Attractiveness of FDs must be linked to its security not interest rate alone.

Rajiv Magal

Halekere Village, (Karnataka)

New EU law

This refers to the news report ‘Despite protests EU to apply deforestation rule from Dec 30’ (September 27).

The new law will may make compliance more difficult, and reduce the competitiveness of exporters to the EU.

The over reach of Europe in climate and global deforestation control by Carbon tax and rigid deforestation rule will hinder the export trade of countries with European Union including India.

EU has humongous exports and if the importing countries start reciprocating, it will hamper EU’s exports too. EU ought to soft pedal with look and leap’ strategy before implementation of the deforestation rules.

NR Nagarajan

Sivakasi