GrowinAgri

Sri Lanka Raises Onion Tax, Hurts Indian Farmers

Sri Lanka has decided to charge more money to bring onions and potatoes into their country. Starting Tuesday, the tax on onions went up from 10 rupees per kilogram to 50 rupees per kilogram. They also increased the tax on potatoes. This makes it more expensive to send these vegetables from places like India to Sri Lanka.

Trouble for Indian Farmers

This change is bad news for farmers in India. They grow lots of onions, but they’re already getting low prices for them. Last year, India started sending onions to Sri Lanka again after a break. Now, Sri Lanka’s new tax might make it harder for Indian farmers to sell their onions there.

Sri Lanka’s Farmers Are Happy

Farmers in Sri Lanka are excited about this decision. They’ve been asking their government to raise taxes on imported vegetables for a long time. They say it’s tough to sell their own vegetables when cheaper ones come from other countries. A special report from Sri Lanka’s food safety team helped make this happen. It showed how imported vegetables affect local farmers.

How Much Are the New Taxes?

Here are the new taxes Sri Lanka is charging:

  • Potatoes: 20 rupees per kilogram
  • Red onions: 50 rupees per kilogram
  • Big onions: 10 rupees per kilogram
  • Sri Lanka hasn’t shared an official announcement yet, but people think it’s coming soon.

India’s Help Last Year

Last year, in April 2024, India allowed 10,000 tons of onions to be sent to Sri Lanka. This was part of a friendly “Neighborhood First” plan to help Sri Lanka during their New Year celebrations. But now, Sri Lanka’s new tax could make things harder for Indian farmers who depend on selling their onions.

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