SATURDAY, MAY 18, 2024
Team Herald
The Indian government has announced significant policy measures, to regulate the onion and pulse market and ensure domestic availability, effective May 4, 2024. A substantial 40% export duty has been imposed on onions, aiming to curb exports and maintain an ample supply within the country.
Simultaneously, the government has extended duty exemptions on the import of desi chana until March 31, 2025, demonstrating its commitment to balancing domestic demand and international trade. Additionally, the duty exemption on imports of yellow peas, applicable to bills of entry issued on or before October 31, 2024, has been prolonged, providing relief to pulse importers.
These policy adjustments, communicated via a notification by the finance ministry, underscore the government's proactive stance in managing trade dynamics of agricultural commodities. The decision to impose a 40% export duty on onions comes amidst efforts to stabilize prices and deter speculative activities in the market. While the export of onions remains restricted under current regulations, exceptions are made for shipments to India's friendly nations. Notably, specified quantities of onions are permitted for export to the United Arab Emirates (UAE) and Bangladesh, reflecting India's diplomatic commitments while addressing domestic concerns.
This move mirrors a similar step taken in August of the previous year when India introduced a 40% export duty on onions, effective until December 31, 2023. Such measures underscore the government's vigilance in managing the onion market, given its importance as a staple ingredient in Indian cuisine and its impact on food inflation.
The announcement has elicited mixed reactions from stakeholders, with exporters expressing concerns over reduced competitiveness in international markets, while consumers and farmers welcome the move as a means to ensure adequate domestic supply and price stability. The government's decision to impose a 40% export duty on onions, coupled with the extension of import duty exemptions for pulses, reflects a proactive strategy aimed at balancing domestic demand with international trade dynamics. As India navigates through challenges in the agricultural sector, such measures play a crucial role in safeguarding the interests of farmers and consumers while fostering economic stability.
