Government Imposes 40 Per Cent Duty On Onion Exports

The authorities also excused the import duty on desi chana till March 31, 2025 and increased the duty exemption on yellow peas imports, covered by the entry bill issued on or before October 31, 2024.

The Ministry of Finance said that these changes will be applicable from May 4, 2024 ( Image Source :Getty )

The Indian government on Friday imposed a 40 per cent duty on onion exports, effective May 4, 2024. Currently, India has placed a ban on onion exports, however, shipments are sent to the country’s friendly counterparts. 

The authorities also excused the import duty on desi chana till March 31, 2025, reported PTI. Further, the government increased the duty exemption on yellow peas imports, covered by the entry bill issued on or before October 31, 2024. 

Sharing the changes via an official notification, the Ministry of Finance said that these will be applicable from May 4, 2024. Prior to the development, India levies a 40 per cent export duty on onions in August last year, till December end 2023. 

Last week, the government permitted the export of 99,150 metric tonne of onions to neighbouring countries such as UAE, Bhutan, Bahrain, Sri Lanka, Mauritius, and Bangladesh. The ban on the exports was originally implemented to protect domestic supply levels and keep a tab on the prices of the produce in the market. 

Expecting a reduced production in the 2023-24 season, along with surging global demand, the government adopted the measure to keep things in control. The Ministry of Consumer Affairs earlier informed that the procurement target for onion buffer stock from the Rabi-2024 produce was set at 500,000 tonne. 

The authorities also allowed the export of 2,000 metric tonne of white onions, grown specifically for servicing the export requirement in the markets in the Middle East and some select European nations. Notably, the cultivation of white onions is done exclusively to cater to exports, leading to an increase in production costs against other varieties of the crop.

Higher seed expenses, following stricter Good Agricultural Practices (GAP), along with adhering to Maximum Residue Limits (MRL) norms adds to the costs for the crop variety.