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Indian Onion Farmers Struggle in Global Market Due to Export Duty

India's onion exports are losing out to competitors like Pakistan and China due to the high export duty imposed by the government, according to a businessline report.


Export Duty Timeline:

Dec 2023: Onion exports banned to prevent domestic shortages.


May 2024: Ban lifted but 40% export duty imposed before Lok Sabha elections.


Sep 2024: Duty reduced to 20% ahead of Maharashtra Assembly elections.


Impact on Farmers & Traders:

Indian onions cost $350 per tonne, while Pakistan offers them at $280.


The export duty makes Indian onions uncompetitive in Gulf markets.


Countries like Pakistan, China, Sudan, Turkey, Iran, and Egypt have captured India’s traditional export markets.


Despite high production, farmers earn low returns due to weak exports.


Calls for Policy Change:

Kerala exporters plan to raise concerns in a joint meeting with the Directorate-General of Foreign Trade (DGFT) and the government.


Horticulture Produce Exporters Association (HPEA) urges the government to scrap the duty to revive exports.


???? Key Issue: Frequent policy changes and high export duties are hurting Indian onion farmers while benefiting global competitors.

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