DELHI: India has completely abolished the export duty on onions, a move announced today by Agriculture and Farmers’ Welfare Minister Shivraj Singh Chouhan. This decision will significantly impact onion prices in key export destinations, including the Gulf states, Bangladesh, Nepal, Malaysia, and Sri Lanka, all of which rely heavily on Indian onions for cooking staple foods.
As the world’s largest exporter of onions, India plays a critical role in supplying this essential ingredient to South and East Asia as well as the Gulf region. The removal of the export duty, which had previously been set at 40%, will provide Indian farmers with better access to global markets. It will also help secure more remunerative prices for their produce, thus benefiting the farming community.
Before the announcement, India reduced the onion export duty from 40% to 20% several months ago. This step was part of a broader effort to tackle domestic inflation, which had prompted India to hike export duties on various agricultural products two years ago. The government is now reviewing and revising these duties downward to help farmers gain a competitive edge globally.
The decision to abolish the onion export duty is expected to boost India’s dominance in the global onion market, where competitors like Pakistan, China, and Egypt also have a significant presence. This change will offer Indian farmers greater opportunities to expand their reach and enhance their earnings.
