Hike in Sri Lanka import duties hit exports

Onion exporters are worried about an increase in the import duty on onionsenacted by the Sri Lankan government to protect its own farmers. Overall, India’s onion exports have gone up to 3,08,803.8 metric tonnes (MT) in April and May this year, compared to 2,35,884.33 MT during April and May last year, according to data from the National Horticultural Research and Development Foundation.

Exporter Prakash Dayma said the Sri Lankan government hasincreased duty on Indian onion to protect its local producers. He added this would severely affect Indian exports. “Earlier, the duty was nil. A few months ago, the Sri Lankan governmentslapped Lanka Rupees (LKR) 25 per kg on imported Indian onion. Now, the prevailing duty is LKR 40 per kg or '18.39 per kg,” Dayma said.

Between March 2015 and March 2016, India exported 11,14,418.13 MT onion. However, experts predicted that the exports would increase significantly this year, i.e till March 2017.

National AgriculturalCooperative Marketing Federation of India director Nanasaheb Patil said due to a bumper crop this season, the exports could increase significantly. But he did not project figures. “Indian onion is in demand because of its pungency and taste. However, exports are difficult to explain and are based on demand and supply. Sometimes, exports are good despite a high minimum export price (MEP), while despite low MEPs there are sometimes low export amounts. During the past two years, exports were hampered by drought and other factors,” Mr Patil said.

NCP’s protest Hundreds of angry NCP activists and farmers on Wednesday staged a massive onion-pelting agitation across Nashik to protest against the decrease in the rates of the tuber crop. A memorandum and garland made of onions were also presented to all the revenue officials in the district. One of the protesters, a farmer, claimed that the crisis is so severe that a buyer offered him a measly five paisa for a kilo of onions.