Relief for farmers, exporters as govt scraps 20% export duty on onions

NEW DELHI: Govt on Saturday announced scrapping of export duty on onions, a move that will bring relief to farmers and exporters who have been demanding the same due to bumper production. The 'nil' export duty will come into effect from April 1. Currently, there is a 20% duty on outbound shipment of onions.

Revenue department notified the move Saturday. In an official statement, consumer affairs department said, "The decision stands as another testament to govt's commitment to ensuring remunerative prices to farmers while maintaining affordability of onion to consumers at this crucial juncture when both mandi and retail prices have softened following expected arrival of rabi crops in good quantities."

It added that even though the current mandi prices are above the level during corresponding period of previous years, there has been a 39% decline in the all-India weighted average modal prices. Similarly, all-India average retail prices have declined by 10% in past one month.

The decision to scrap the export duty comes amid concerns flagged by traders over India losing its market share in the global market and after modal price (most common price across centres) dropped to Rs 1,420 from Rs 2,270 a quintal in the past three weeks - a reduction of Rs 850 a quintal.


Stay informed with the latest business news, updates on bank holidays and public holidays.

Boost your business with AI. Join this course by GrowFast and unlock the power of artificial intelligence. Sign up now!