Government Halves Duty on Onion Exports to Boost Farmer Incomes

The government reduced the export duty on onions to 20% from 40%, effective from Saturday. This decision aims to boost outbound shipments and enhance farmers' incomes. Additionally, the minimum export price of USD 550 per tonne was removed, and subsidized retail sales of onions at Rs 35 per kg commenced to ease consumer prices.

The government on Friday announced a significant reduction in the export duty on onions, cutting it from 40 percent to 20 percent. This measure will take effect from Saturday, according to a notification from the finance ministry.

The reduction aims to stimulate outbound shipments and better farmers' incomes, following last fiscal's export of 16.07 lakh tonnes of onions. Earlier in the day, the government also removed the minimum export price of USD 550 per tonne on onions.

Despite higher retail prices, with the all-India average at Rs 50.83 per kg, the move intends to provide relief by initiating subsidized retail sales at Rs 35 per kg in Delhi-NCR and Mumbai. Additionally, the finance ministry extended duty exemptions on yellow pea imports by two months.

(With inputs from agencies.)