Traders from Tiruchy, Tamil Nadu, have raised issues regarding the accumulation of onions following a 40% increase in export duty, urging the government for a reversal to alleviate their business distress.
Tamil Nadu ranks among the top onion-producing states in India, exporting primarily to Singapore, Malaysia, Sri Lanka, and Australia. Tiruchy, along with other districts, is significant in onion cultivation and export, hosting markets for grade-based segregation. This situation escalated after a government directive on March 31, effective May 4, elevated the export duty, complicating sales even in domestic markets.
According to Thangaraj, secretary of the Tiruchy Onion Mandy Traders Association, the daily arrival of 500 tons of shallots and big onions has been affected, with exports usually accounting for 200 tons. The duty hike has instilled apprehension among exporters, impacting their profitability. Thangaraj highlighted that some traders, anticipating a price rise to offset the increased duty and expenses, are now considering local sales to minimize losses, appealing for a duty rollback.
Source: dtnext.in