Removal of 20% onion export duty to boost farmers' income: Shivraj Chouhan

The government's decision to withdraw 20 per cent customs duty on onion exports effective April 1 will boost farmers' income, Agriculture Minister Shivraj Singh Chouhan said on Monday.

"There will be no duty on onion export so that onion grown by our farmers with hard work reaches the global markets, and they can get better price and remunerative price," Chouhan said in a video statement.

The minister said the export duty was earlier fixed at 40 per cent, but was reduced to 20 per cent when onion prices started falling and farmers began getting lower returns. 

"Now, the government has decided that 20 per cent export duty should also be removed completely," he added.

According to a notification issued last week by the Finance Ministry, the export duty withdrawal will come into effect from April 1.

Chouhan said the Narendra Modi government is "farmer-friendly" and ensuring remunerative prices for farmers is its "priority and commitment".

The export duty removal aims to protect domestic farmers from steep fall in onion prices.