India defends decision to impose 40 per cent export duty on onions

According to India, the decision was a move to boost domestic supply and control retail prices.

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File photo of onions. PHOTO: THE DAILY STAR

August 22, 2023

DHAKA – India yesterday said the decision to impose a 40 percent export duty on onions was a timely move to boost domestic supply and control retail prices.

“It is not a premature decision to impose export duty on onion. It is a timely decision taken to increase the domestic availability and check prices,” Consumer Affairs Secretary Rohit Kumar Singh said.

His remarks came amid farmers’ protest at several places in Nashik district in Maharashtra, which has India’s largest wholesale market of onions, against the export duty. Traders are also against the imposition of the duty, reports our New Delhi correspondent.

Officials said the decision to impose export duty was also prompted by a surge in onion exports. Between April 1 and August 4 this fiscal, 9.75 lakh tonnes of onions have been exported from the country. The top three importing countries in terms of value are Bangladesh, Malaysia and the UAE.

Earlier in the day, traders decided to close onion auctions indefinitely in all Agriculture Produce Market Committees (APMCs) in Nashik district, including at Lasalgaon, which is the largest wholesale onion market in India.

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