In light of the anticipated surge in fresh onion crops, Indian exporters are advocating for the government to abolish the 20 percent export duty. The Horticulture Produce Exporters Association (HPEA) is set to formally propose this request to the Centre, aiming to enhance India's competitiveness in the international market. Vikas Singh, HPEA's vice-president, highlighted the disparity in export prices between India and its competitors, such as Pakistan. He stated, "India's export prices range from $600 to $720 per ton, while Pakistan offers onions at around $500 per ton."
According to Singh, eliminating the export duty could align India's prices more closely with the $500 per ton mark, potentially increasing the appeal of Indian onions globally. This move is deemed necessary as India anticipates a significant influx of late kharif and summer onions, following an increase in planting activities. The expected rise in supply could depress domestic wholesale prices further, underscoring the importance of expanded export opportunities to prevent a market glut.
The government had previously reduced the onion export duty from 40 percent to 20 percent and removed the minimum export price (MEP) requirement of $550 per ton on September 13. Despite these measures, onion export volumes have declined, with the Agricultural and Processed Food Products Exports Development Authority (APEDA) reporting a fall to 403,000 tons in the first half of this fiscal year from 1.31 million tons in the corresponding period last year. Exporters believe that rescinding the current export duty is crucial for restoring India's competitive position in the global onion market.
Source: KNN India