India Removes 20% Onion Export Duty from April 2025 to Support Farmers
Date: 23-mar-2025
Government Decision to Boost Farmer Income and Exports
The Indian government has officially declared that the 20% export duty on onions, which was imposed in September 2024, will be withdrawn starting April 1, 2025. This major policy shift is expected to strengthen export competitiveness and provide relief to onion farmers who have been facing fluctuating prices in the domestic market.
Why Was the Duty Imposed?
In September 2024, the government implemented a 20% export duty on onions to tackle rising domestic prices and ensure stable supply for local consumers. The move helped cool down prices temporarily, but it adversely affected onion exports and farmer earnings.
Reasons Behind the Removal
The Ministry of Commerce and Industry announced the decision to scrap the duty after evaluating onion production and export trends. Key factors influencing this move include:
- Stabilized domestic supply after a strong rabi crop harvest
- Increased farmer demands for better export opportunities
- Improved global demand for Indian onions
- Support for foreign exchange earnings through agricultural exports
Expected Impact on Farmers and Markets
With the removal of the export duty, Indian onions will become more competitive in international markets such as Bangladesh, the UAE, and Malaysia. Farmers are likely to benefit from higher export prices and improved demand. However, the government will monitor domestic prices to avoid any adverse impact on consumers.
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Experts Welcome the Move
Exporters and farmer unions have welcomed the decision. According to agriculture trade analysts, this move could increase onion exports by 20-25% in the upcoming quarter, helping balance trade and support the rural economy.
Conclusion
This proactive step by the Indian government is aimed at striking a balance between farmer welfare and consumer interest. By removing the export duty, India is signaling its commitment to supporting its agricultural sector while staying competitive in global markets.
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