Government Lifts Onion Export Duty: A Win for Farmers and Consumers

The government has withdrawn the 20% export duty on onions from April 1 to protect farmers' interests and maintain affordability for consumers. The duty had previously impacted onion exports, which totaled 1.17 million tonnes by March 18. Higher onion production this year is expected to further stabilize market prices.

In a move aimed at supporting farmers and easing consumer prices, the government has announced the removal of the 20% export duty on onions effective April 1. This decision follows recommendations from the Department of Consumer Affairs and signals an end to restrictions that started in September 2024.

The export duty had curtailed onion exports, yet shipments still reached 1.17 million tonnes by March 18 of the current fiscal year. Notably, export volumes surged from 72,000 tonnes in September 2024 to 185,000 tonnes in January, highlighting a resilient trade despite the restrictions.

Favorable weather conditions have boosted the rabi onion crop, with production estimated at 22.7 million tonnes, an 18% increase from last year. Onion prices have dipped in major markets due to the higher yield, and the government believes this surplus will lead to further price stabilization in the coming months.

(With inputs from agencies.)