Question
For which agricultural commodity has the Government of
India abolished the 20 percent export duty?Solution
The Government of India abolished the 20 percent export duty on onions, effective from April 1, 2025. This policy decision was announced by Union Agriculture and Farmers' Welfare Minister Shivraj Singh Chouhan with the objective of ensuring farmers receive fair and remunerative prices for their produce. Previously in 2023, the government had imposed a 40 percent export duty on onions to discourage exports and stabilize domestic prices during a period of increased demand. When onion prices subsequently declined, affecting farmers' incomes, the export duty was reduced from 40 percent to 20 percent. The complete removal of the export duty is expected to facilitate Indian farmers' access to global markets without duty barriers, thereby securing better prices for their produce.
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