Government Lifts 20% Export Duty on Onions, Effective April 1
The central government has announced the withdrawal of the 20% export duty on onions, which was imposed in September 2024. The decision, aimed at supporting farmers while maintaining price stability for consumers, will come into effect from April 1, 2025, according to a notification issued by the Department of Revenue based on the Department of Consumer Affairs’ communication.
The central government has announced the withdrawal of the 20% export duty on onions, which was imposed in September 2024. The decision, aimed at supporting farmers while maintaining price stability for consumers, will come into effect from April 1, 2025, according to a notification issued by the Department of Revenue based on the Department of Consumer Affairs’ communication.
Onion Export Measures and Trends
The government had earlier imposed various restrictions, including export duty, a minimum export price (MEP), and even a temporary export ban from December 8, 2023, to May 3, 2024, to ensure sufficient domestic availability.
Despite these restrictions, onion exports remained significant. In 2023-24, India exported 17.17 lakh tonnes of onions, while in 2024-25 (until March 18), the country had already exported 11.65 lakh tonnes. Monthly exports saw an increase from 0.72 lakh tonnes in September 2024 to 1.85 lakh tonnes in January 2025.
Government’s Justification for Lifting Duty
The Ministry of Consumer Affairs, Food & Public Distribution stated that the move aligns with the government’s objective of ensuring fair prices for farmers while maintaining affordability for consumers. The withdrawal of the duty comes as both wholesale and retail onion prices have softened due to the arrival of rabi crops in large quantities.
Although mandi prices remain higher than in the corresponding period of previous years, an all-India weighted average modal price decline of 39% has been observed. Similarly, retail onion prices have dropped by 10% over the past month.
Rabi Onion Production to Boost Market Stability
The government estimates that rabi onion production this year will reach 227 lakh metric tonnes—an 18% increase from last year’s 192 lakh tonnes. Since rabi onions account for 70-75% of India’s total onion production, they play a crucial role in stabilizing prices until the next kharif harvest arrives in October-November.
With onion arrivals increasing in key markets like Lasalgaon and Pimpalgaon, the ministry expects further price relief in the coming months. The decision to remove the export duty is seen as a balancing act to ensure both domestic price stability and better earnings for onion farmers.
Sources By Agencies
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