20% export duty on onion scrapped, farmers’ organisation asks for long-term policy

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| Photo Credit: The Hindu

After Centre scraps 20% export duty on onion effective from April 1, Maharashtra government welcomes the move, Kisan Sabha says it is too late and seeks a policy solution to the issue. 

The Kisan Sabha welcomed the move but also called it “unfortunate” as export restrictions have impacted onion producers adversely. “We welcome the move; if this will bring comfort to our onion farmers; however, it can recover the losses the farmers have faced,” a member of the Sabha said. 

Against this backdrop, Kisan Sabha has urged the government to avoid irregular export bans and export restrictions, not to increase export duty and instead take steps to formulate long-term export policy for onion producers at the international level, generating trust among the people.

The Department of Revenue issued a notification according to the Department of Consumer Affairs. “The decision stands as another testament to the government’s commitment to ensuring remunerative prices to farmers while maintaining the affordability of onion to the consumers,” the statement reads. 

The government had previously implemented various export restrictions, including export prohibition from December 8, 2023, to May 3, 2024, before imposing the 20% duty in September 2024, which has now been removed.