- Export duty on onions reduced from 40% to 20% effective Saturday.
- Minimum export price of USD 550 per tonne on onions removed.
- The reduction aims to boost onion shipments and increase farmers‘ income.
In a recent policy change, the Indian government has slashed the export duty on onions from 40% to 20%.
This adjustment, effective from Saturday, is part of broader measures to enhance the country’s onion export potential. By lowering the duty, the government aims to make Indian onions more competitive in the international market.
Indian Government Takes Steps to Boost Onion Exports
The removal of the minimum export price of USD 550 per tonne is expected to further stimulate outbound shipments. This decision comes despite ongoing high retail prices of onions domestically. The government’s move seeks to balance domestic market needs with the economic benefits of increased agricultural exports.
Alongside the duty reduction, the government has also removed the minimum export price requirement of USD 550 per tonne. This change is intended to further encourage exporters by eliminating price barriers. The removal of these constraints is expected to boost India’s onion exports significantly, which have seen a decline compared to the previous fiscal year.
The move comes in response to the challenges faced by farmers and exporters due to high domestic prices. By adjusting export policies, the government aims to support farmers’ incomes and promote greater export volumes. This is part of a broader strategy to enhance India’s agricultural export sector and improve market access.
Despite ongoing high retail prices for onions in India, the policy changes reflect a strategic shift to balance domestic needs with export opportunities. The government’s actions are designed to bolster the agricultural sector’s economic stability and foster growth in the international market.
The reduction in export duty and removal of the minimum export price for onions are strategic moves by the Indian government to enhance export potential and support farmers amid high domestic prices.
“India’s decision to cut onion export duty reflects a strategic effort to balance domestic market needs with the goal of enhancing global trade opportunities.”
