Pune: Uncertainty Looms Over Onion Exports, Lack of Clarity on Export Duty Delays Shipments

Pune, 8th May 2024: The Central Government lifted the export ban on onions by imposing a minimum export price, but the Central Board of Indirect Taxes and Customs (CBIC) hasn’t received clear directives regarding the exact export duty to be imposed. Consequently, onion exports have not commenced yet.

During a press conference in Delhi on 4th May, the Ministry of Commerce and Industry of the Central Government announced that a 40 % export duty would apply to onion exports. However, written orders confirming this directive have not been received by the CBIC. As a result, despite the official opening of onion exports on 4th May, actual exports have not yet begun.

Manoj Kumar Jain, an onion exporter from Lasalgaon, highlighted, “The CBIC has not received any orders from the Center regarding the exact amount of export duty to be levied on onions. CBIC is uncertain about whether to impose an export duty on onions and, if so, how much. Although exporting traders have received clear instructions on the minimum export duty of $550 per tonne, they have not received clear instructions on the export duty, leading to confusion among businessmen. Despite the readiness of exporters to commence exports once the ban is lifted, onion-filled containers remain outside market committees in Nashik and ports in Mumbai. However, due to the unresolved confusion regarding export duty, exports have yet to commence.”

Akshay Sangle, an onion exporter from Niphad, echoed similar sentiments, stating, “Although the export ban has been lifted, traders have not received official information about the exact amount of export duty to be paid on onions. Additionally, there is a lack of concrete information from the customs department. As a result, onion exports have not yet commenced. A meeting was held in Mumbai today, Monday, to address this issue, but a clear decision has not been reached.”

Manoj Kumar Jain reiterated, “There is insufficient clarity regarding the exact amount of export duty to be levied on onion exports. This confusion is also affecting the CBIC. Until clear orders are issued in this regard, onion exports will remain stalled, with containers full of onions awaiting shipment outside the port in Mumbai.”