Duty on refined oils hiked to 32.5%, export duty on onions cut

In a series of major pro-farmer decisions, the government announced on Saturday that it had increased the basic duty on refined oil to 32.5 per cent, reduced the export duty on onions from 40 per cent to 20 per cent, raised the import duty on edible oils from zero to 20 per cent, and removed the minimum export duty on basmati rice.

These measures come ahead of the Haryana and Jammu & Kashmir elections, followed by the upcoming Assembly polls in Maharashtra and Jharkhand.

Agriculture Minister Shivraj Singh Chouhan said, “The decision to raise the basic duty on refined oils will increase the demand for mustard, sunflower, and groundnut crops used in refinery oil production. This will enable farmers to get better prices for these crops, and with the increase in small and rural refineries, employment opportunities will also rise.”

Regarding the reduction in export duty on onions, Chouhan stated that onion farmers would benefit from improved prices, and onion exports are expected to increase. On the removal of the export duty on basmati, he said farmers would receive fair prices for their produce, which would further boost Basmati rice exports.

Chouhan added, “The farmer-friendly government has also decided to increase the import duty on edible oils from zero per cent to 20 per cent.”

Prime Minister Narendra Modi hailed the announcements, stating, “We are leaving no stone unturned to support our hardworking farmers, who ensure the food security of our country. Whether it’s reducing export duty on onions or increasing import duty on edible oils, these decisions will significantly benefit our food producers by increasing their income and creating employment in rural areas.”