The Indian government has announced that, effective April 1, it will abolish the 20 per cent export duty on onions, a move designed to bolster farmers facing plummeting prices due to an abundant rabi harvest. This decision, revealed on Saturday, responds to mounting concerns from agricultural stakeholders and aims to stabilise the domestic onion market.
The export duty was initially imposed on September 13, 2024, as part of a series of measures to ensure sufficient domestic availability of onions and to curb inflation. However, with the anticipated arrival of a substantial rabi crop, mandi (wholesale market) prices have softened considerably, prompting the government to reassess its stance.
In an official statement, the Department of Consumer Affairs emphasised the government’s commitment to balancing the interests of both farmers and consumers: “The decision stands as another testament to the government’s commitment to ensuring remunerative prices to farmers while maintaining affordability of onion to consumers at this crucial juncture when both mandi and retail prices have softened following expected arrival of rabi crops in good quantities.”
Recent data indicates a 39 per cent decline in the all-India weighted average modal prices, with retail prices dropping by 10 per cent over the past month. This price reduction has been attributed to the increased supply from the rabi harvest, leading to concerns among farmers about declining incomes.
