India: Government Scrapped 20% Export Duty On Onion

India: The Maharashtra government applauds the Center’s decision to eliminate the 20% export tax on onions, which will take effect on April 1. However, the Kisan Sabha argues it is too late and is looking for a legislative solution.

While applauding the action, the Kisan Sabha referred to it as “unfortunate” because export limitations have had a negative effect on onion producers. A Sabha member stated, “We applaud the action if it will provide solace to our onion farmers, but it can also make up for the losses the farmers have suffered.”

In light of this, the Kisan Sabha has urged the government to adopt a long-term export policy for onion producers globally, build public trust, and refrain from imposing sporadic export bans and limitations in favor of raising export duties.

The Department of Consumer Affairs claims that a notification was sent by the Department of Revenue. According to the statement, “the decision is yet another indication of the government’s determination to guarantee farmers fair prices while keeping onions affordable for consumers.”

Before enforcing the 20% tariff in September 2024, the government had previously imposed a number of export limitations, including a ban on exports from December 8, 2023, to May 3, 2024. These restrictions have since been lifted.

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