Onion Export Tariffs: An Overview

  Aug 24, 2023

Export Duty on Onions

1. What is the recent action taken by the Indian government regarding onion exports?

The Indian government has imposed a 40% export duty on onions to stabilize domestic onion prices and ensure an adequate supply in the local market.

2. Why was this export duty imposed?

The export duty aims to control the sharp rise in onion prices and increase the availability of onions in the domestic market, especially in preparation for the upcoming festival season.

3. What is the expected impact of this export duty on the market?

By curbing onion exports and releasing government stocks, the government aims to create a stable supply-demand balance in the domestic onion market. This move also encourages private traders to release their stocks, contributing to market stability.

4. How long will this export duty be in effect?

The export duty will be in effect until December 31, 2023. This duration allows the government to address the issue of onion prices and stabilize the domestic market.

5. What is the objective of this export duty in relation to farmers and consumers?

The government's intervention seeks to strike a balance between the interests of farmers and consumers. While ensuring remunerative prices for farmers, the aim is also to provide consumers with onions at reasonable prices.

6. How does the National Agricultural Cooperative Marketing Federation (NAFED) contribute to this effort?

NAFED, a cooperative organization, plays a key role in auctioning onion stocks to increase supply and stabilize prices. This aligns with the government's goal of ensuring ample onion availability and reasonable prices for consumers.

7. What overall impact is expected from these measures?

The imposition of export duty and the release of government onion stocks are steps taken to mitigate the impact of rising onion prices on consumers. The primary objective is to maintain a balance between the interests of farmers and consumers, ensuring fair incomes for farmers and affordable prices for consumers.


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