With the government withdrawing the export duty, the onion grown by our farmers with hard work reaches the global markets, and they can get a better and remunerative price.
The government has withdrawn the 20 per cent export duty on onions effective from April 1. The move comes around 1.5 years after the restriction was imposed on this kitchen staple.
The Department of Revenue issued a notification following communication from the Department of Consumer Affairs, according to an official statement.
“The decision stands as another testament to the government’s commitment to ensuring remunerative prices to farmers while maintaining affordability of onions to consumers,” the consumer affairs ministry said.
When was export duty imposed?
The export duty has been in place since September 13, 2024.
Why does the government levy export duty?
The government levies export duties and similar measures to ensure a stable domestic supply.
To ensure domestic availability, the government had previously implemented various export restrictions, including export prohibition from December 8, 2023, to May 3, 2024, before imposing the 20 per cent duty in September 2024.
How does export duty impact customers?
When import duty is levied on any vegetable, it will become more easily available. Thus, it will result in making that particular vegetable more affordable.
How will this move impact farmers?
With the government withdrawing the export duty, the onion grown by our farmers with hard work reaches the global markets, and they can get a better and remunerative price.
It is important to mention that despite export restrictions, total onion exports reached 1.17 million tonnes through March 18 of the current fiscal year.
Meanwhile, onion prices have declined in key growing states due to increased crop arrivals. At Asia’s biggest wholesale markets, Lasalgaon and Pimpalgaon in Maharashtra, prices were ruling at Rs 1,330 per quintal and Rs 1,325 per quintal, respectively, on March 21.
All-India weighted average modal prices fell 39 per cent while retail prices dropped 10 per cent over the past month, the ministry reported.
With PTI inputs
