Daijiworld Media Network – New Delhi

New Delhi, Mar 23: In a major relief for farmers and exporters, the government on Saturday announced the removal of the 20% export duty on onions. The new policy, set to take effect from April 1, comes in response to bumper production and growing demands from the farming community.

The revenue department officially notified the decision, while the consumer affairs department stated that it reflects the government’s commitment to ensuring fair prices for farmers while maintaining affordability for consumers.

"Even though mandi prices remain above last year’s levels, there has been a 39% drop in all-India weighted average modal prices. Similarly, retail onion prices have fallen by 10% in the past month," the statement noted.

The move follows concerns from traders over India’s declining share in the global onion market. In the past three weeks, modal onion prices fell sharply from Rs 2,270 to Rs 1,420 per quintal a decline of Rs 850 prompting the government to act.

With this decision, stakeholders expect a boost in onion exports, benefitting both farmers and the economy.