The Indian government's decision to remove the 20 per cent customs duty on onion exports from April 1 aims to increase farmers' incomes by offering them greater access to international markets.
Agriculture Minister Shivraj Singh Chouhan announced this measure, emphasising that it reflects the Narendra Modi government's commitment to ensuring fair prices for farmers and shielding them from declining onion prices.
Chouhan, in a video statement, highlighted that the move would allow onions cultivated by Indian farmers through hard work to reach global markets, enabling them to secure better and more profitable prices.
The minister noted that the export duty on onions was initially set at 40 per cent to control domestic price fluctuations. It was later reduced to 20 per cent when onion prices began to fall, resulting in farmers receiving lower returns.
Now, with the complete removal of the 20 per cent duty, farmers are expected to benefit more significantly.
According to a notification issued by the Finance Ministry last week, the withdrawal of the export duty will take effect from April 1.
Minister Chouhan stressed that the Modi government is committed to being "farmer-friendly" and prioritises ensuring that agricultural producers receive remunerative prices for their crops.
The decision to eliminate the export duty aims to protect domestic farmers from the adverse effects of plummeting onion prices in the local market.
By expanding access to international markets, the government hopes to create a balance that benefits both the agricultural community and the economy.
This move is expected to stabilise the onion market, offering better price realisation for farmers while potentially increasing India's presence in global onion trade.
The government believes that such steps will strengthen the agricultural sector, providing long-term benefits to farmers and boosting their confidence in cultivating cash crops.
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