Government extends export duty benefits to onion

The government has decided to extend export duty benefits to onion for promoting its outbound shipments.  This step has been taken in order to arrest steep fall in onion prices and protect farmers interest. Commerce and Industry Minister Nirmala Sitharaman stated that the duty benefits for export of both fresh and stored onions would be available till December 31.

Wholesale prices at the Asia’s biggest onion market at Lasalgaon in Maharashtra have crashed to Rs 6 per kg compared to Rs 48.50 per kg in the year-ago period. The prices have crashed due to estimated higher production at 202 lakh tonnes (LT) in 2015-16 crop year (July-June) as against 189 LT in 2014-15 crop year.

The exports of onion went up 33% to Rs 2,362 crore in the first 11 months of 2015-16 on higher realization of sales. India exported 10.86 LT of onion for Rs 2,010 crore in 2014-15.