New Delhi: A Boost for the Agricultural Sector

In a significant move to support the agricultural sector, the government announced on Saturday the removal of the 20% export duty on onions. This decision, effective from April 1, is expected to provide substantial relief to farmers and exporters who have been advocating for such measures due to a bumper production this year.

Impact on Market Prices

The consumer affairs department highlighted that this decision underscores the government's commitment to ensuring farmers receive remunerative prices while keeping onions affordable for consumers. This comes at a crucial time when both mandi and retail prices have seen a decline, thanks to the expected arrival of rabi crops in substantial quantities.

Despite current mandi prices being higher than the same period last year, there has been a notable 39% decrease in the all-India weighted average modal prices. Additionally, the all-India average retail prices have dropped by 10% over the past month.

Global Market Concerns Addressed

The move to eliminate the export duty also addresses concerns raised by traders about India losing its market share in the global arena. This decision follows a significant reduction in modal prices from Rs 2,270 to Rs 1,420 per quintal over the last three weeks, marking a decrease of Rs 850 per quintal.