Onion farmers in Nashik received a significant boost with the Sri Lankan government reducing the import duty on onions from 30% to 10%. This decision, announced on Sunday, is expected to strengthen onion exports and benefit Nashik's onion producers. Sri Lanka, one of India's largest onion importers after Bangladesh, currently accounts for 9% of India's onion exports.
The reduction in import duty has been welcomed by exporters and is likely to increase the demand for Indian onions in Sri Lanka, providing better prices for Nashik farmers. January typically sees a drop in onion quality, leading to lower prices for farmers. The duty reduction comes as a timely intervention to support exports during this period, especially as 40% of India's onion exports already head to markets like Sri Lanka.
The export scenario for onions had slowed down due to higher duties and restrictions. Sri Lanka's earlier duty of ₹30 per kilogram had limited Indian onions' presence in their market. With the duty now slashed, exporters expect a surge in demand, which will drive financial benefits for farmers.
The Indian government had also imposed restrictions on onion exports to stabilize domestic prices, allowing limited exports to countries like the UAE and Sri Lanka. Recently, 10,000 metric tonnes of onions were cleared for export to Sri Lanka, providing additional support to the market.
Producers and exporters in Nashik are optimistic that this decision will not only improve financial returns but also ensure better trade relations. The move comes at a time when Nashik farmers had been struggling with price instability. Sri Lanka's decision is expected to encourage a larger export turnover, offering much-needed relief.
This development marks a positive shift for Nashik’s onion industry, aligning with hopes for sustained export growth and better returns for farmers.