Because of natural calamities like rain, Onion production is taking a dip. Because of this Onion prices in Indian market are rising up since last 5-6 months, in spite of government interventions like purchasing onion through NAFED and selling it in market at subsidized rates.
Government first implied 40% Export Duty on Onion, then reduced it to 20% because of resistance of farmers and their organizations. But this didn’t help reduce export and prices as intended. Then Government implied 800$/Mt MEP (Minimum Export Duty) on Onion and it reduced export little bit, as this rate was not feasible for all export destination countries. And today government of India took a big decision of completely prohibiting Onion Export.
India’s Export Target
India has set an export target of $ 1 Trillion till 2030 and Agri Export Target of $ 100 Billion. Key governmental policies and infrastructure are adjusted to adhere to this objective. Still Indian government has taken unexpected decisions of banning or reducing export of many commodities like wheat, rice, sugar etc. Onion exports from India are prohibited until March 31, 2024
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