India Eases Onion Export Restrictions, Halves Export Duty to 20%
India has further eased restrictions on onion exports. The country decided to cancel the conditions related to export prices. The 40 percent duty imposed on onion exports has been halved to 20 percent. According to a notification by the country's finance ministry, the Indian news agency PTI reported that the reduced tariffs came into effect on Saturday (September 14).
Meanwhile, the Times of India reported that India's Directorate General of Foreign Trade decided to cancel the conditions related to the minimum export price of onions on Friday (September 13). This decision will be effective immediately. As a result, Indian traders can now export onion at any price.
According to Indian media, in a notification issued on Friday, the government has withdrawn the minimum export conditions for onion exports with immediate effect. In May this year, India's Modi-led government lifted the ban on onion exports but fixed the minimum export price.
India had once completely stopped onion exports due to rising prices in the domestic market. However, in May of this year, the export ban was lifted and the minimum export price of onion was set at 550 dollars. Apart from this, the country's government imposes a 40 percent duty on exports.
The main objective of these two moves by India was to discourage onion exports from India. This move by Delhi helps reduce exports from India to a significant extent.
According to Economic Times, India's onion exports fell by more than 50 percent in June alone. Till July 31 of the current financial year 2024-25, 260 thousand tons of onions have been exported from India. In the previous financial year, the export amount was 17 lakh 17 thousand tons. In India, the fiscal year starts in April.
India is one of the leading onion exporters in the world. Many countries including Bangladesh import onions from India. Importers of Bangladesh are interested in importing onions from India. Because products can be brought quickly from the neighboring country, the demand for Indian onion in the market is more than onion imported from other countries.
The Times of India also reported that the facility was given to onion farmers ahead of the important assembly elections in Maharashtra. Maharashtra is the most important onion-producing region in India. Farmers of this state were most affected due to the decline in onion exports.
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