The export tax on onions has been removed by the Indian Revenue Department. As of April 1, the nation is removing this obligation.Onion exports were previously subject to a 20% tariff. In other words, onions would be duty free for Indian exporters going forward.
In this regard, the Indian Ministry of Finance’s revenue department sent a notification yesterday, Saturday. The Indian Ministry of Finance’s website provided the information. In addition, the Indian media has reported this news. For around a year and a half, the Indian government had
placed a number of limitations on onion exports, including setting a minimum price. They have now moved past that. The primary reason behind their decision is the onion stock has increased.
India withdrew this export duty at a time when the price of onion in the Bangladesh market is very low. It has been seen in the past that when the price of onion in the Bangladesh market started to decrease, the price decreased further due to the import of Indian onions. This has hurt farmers. Again, after importing onions from India, the price of onion in the domestic market has decreased.
There is some ambiguity about the demand and production of onions in the country. According to the Department of Agricultural Extension, in some years, onion production is higher than the demand, but onions have to be imported.
It is alleged that there is no reliable information about the amount of onion required in the country every year, how much of it can be met through domestic production and how much has to be met through imports. Hoarders take advantage of this, create an artificial crisis and increase the price. As a result, if Indian onion imports start at this time, the price of onion in the domestic market may fall further.
According to the Trading Corporation of Bangladesh (TCB), the price of domestic onions in the capital market today is 35 to 50 taka per kg. Exactly a year ago, i.e. on this day in 2024, the price of domestic onions was 60 to 70 taka.
The onion season in the country is nearing its end. Onions have been removed from the fields. As a result, there is now sufficient stock of domestic onions in the domestic market. There is not much imported onion. That is why the TCB’s daily account book does not include the price of imported onions today. However, a month ago, on February 22, the price of imported onions in the capital market was 65 to 68 taka per kg. At that time, the price of domestic onions was 40 to 50 taka.
In December 2023, the central government of India banned onion exports to maintain supply in the domestic market. At that time, India banned onion exports due to fears of domestic shortage. The ban on exports was imposed from December 8 to March 31, 2024. A week before the ban ended, the government announced an indefinite ban on onion exports.
In the meantime, onion prices around the world continued to rise. But due to the ban on exports, the country’s farmers were not able to take advantage of it. They then started a movement about this. In the face of the movement and ahead of the Lok Sabha elections, the central government of India allowed onion exports again on May 4 last year.
In addition, a minimum price of $550 per ton was set, as well as a 40 percent export tariff. The Indian government then lowered the export tariff by 20% on September 13, 2024, in addition to eliminating the minimum export price. Additionally, that 20 percent duty has been removed this time.
In the past, India has occasionally placed limitations on exports to other countries in order to keep the domestic market supplied with onions. This has also led to a dispute with Bangladesh. Consequently, following the December 2023 embargo, India has given special consideration to exporting onions to a number of other nations, including Bangladesh.
