Government Cuts Onion Export Duty by 20%: New Policy Takes Effect in April

New Delhi [India], March 22 (ANI): The central government on Saturday withdrew 20 per cent duty on the export of onions imposed in September 2024.

This policy will take effect starting from April 1, 2025. Today, the Department of Revenue released an announcement via the Department of Consumer Affairs' channels confirming this development.

To ensure domestic availability, the government had taken measures to check export by means of duty, minimum export price (MEP) and even to the extent of export prohibition for almost five months, from December 8, 2023 till May 3, 2024.

The export tax of 20 percent, which has now been eliminated, has been in effect since September 13, 2024.

In spite of the export limitations, the authorities stated that the overall onion exports for the period from 2023-24 amounted to 17.17 lakh tonnes, whereas between April 2024 up until March 18th, this figure stood at 11.65 lakh tonnes.

Monthly onion export quantity had picked up from 0.72 lakh tonne in September, 2024 to 1.85 lakh tonne in January, 2025.

"The decision stands as another testament to the government's commitment to ensuring remunerative prices to farmers while maintaining affordability of onion to the consumers at this crucial juncture when both mandi and retail prices have soften following expected arrival of rabi crops in good quantities," Ministry of Consumer Affairs, Food & Public Distribution, said in a release.

Despite the present mandi prices being higher than those in the same period of earlier years, there has been a 39 percent decrease noted in the nationwide weighted average modal prices, according to the statement.

Likewise, the nationwide average selling price for onions dropped by 10 percent over the last month.

The arrival of onions at the benchmark markets of Lasalgoan and Pimpalgaon has seen an increase starting this month.

According to the projections from the Department of Agriculture and Farmers Welfare, this year’s rabi output stands at 227 lakh metric tonnes, marking an increase of more than 18 percent compared to the 192 lakh tonnes recorded last year.

The Rabi onion, making up 70-75 percent of India's entire onion output, plays a vital role in maintaining consistent supply and stabilizing prices until the Kharif harvest arrives around October/November.

The Ministry of Food stated that the anticipated increased production for this season is projected to continue reducing market prices over the next few months. (ANI)

Provided by Syndigate Media Inc. ( Syndigate.info ).