GOI withdraws fixed price on onion exports and cuts customs duty

BALURGHAT: In a major move, the Government of India has withdrawn the fixed price on onion exports, allowing traders to sell at prevailing Indian market rates. The Union Ministry of Commerce issued a notification recently, stating the new changes in onion export policies. This comes after the earlier decision in May, when the export price was set at $550 per metric ton.

On May 4, the directorate general of Foreign Trade (DGFT) issued a notification setting the export price of onions at $550 per metric ton with no limit on the export quantity, along with a 40 per cent customs duty. However, a new notification has removed the fixed price, allowing onions to be exported at Indian market rates under the revised policy. Customs duty has also been reduced to 20 per cent.”

Commenting on the development, Rajesh Aggarwal, vice president of the Hili Exporters and Importers Customs Clearing Agent Association, said: “The directorate general of Foreign Trade published a notification recently regarding the reduction of the export price of onion. A specific instruction has also been issued regarding 20 per cent custom duty also.”

Discussions are underway among traders and exporters about how this change might impact the onion export market. With Indian onion prices fluctuating, the move could potentially benefit both domestic markets and international buyers.