Government withdraws 20 percent duty on onion exports, decision to be implemented from 1 April

New Delhi [India]March 22 (ANI): The central government on Saturday withdrew 20 percent duty on onion exports in September 2024.

This decision will be applicable on 1 April 2025. The Revenue Department today issued a notification to this effect on the Communications Department of Consumer Affairs.

To ensure domestic availability, the government had taken measures to check exports through duty, minimum export price (MEP) and even exports to the extent of export prohibition for about five months, from 8 December 2023 to May 20, 2024.

The export duty of 20 percent, which has now been removed, is applicable from September 13, 2024.

Despite the export sanctions, the government said that the total onion exports during 2023-24 were 17.17 lakh tonnes and in 2024–25 (till March 18), it was 11.65 million tonnes.

The amount of monthly onion exports increased by 0.72 lakh tonnes in September, 1.85 lakh tonnes in 2024 in January, 2025.

The Ministry of Consumer Affairs, Food and Public Distribution, said, “This decision stands as a more will for the government’s commitment to ensure remuneration prices for farmers while maintaining onion ability to consumers, when both market and retail prices have become soft after the expected of Rabi crops.”

Regardless, the current market prices are above the level during the same period of previous years, a decline of 39 percent has been seen in the All -India weighted average model prices, the release said.

Similarly, the All India average retail onion prices declined by 10 percent in the last one month.

The arrival of onion in benchmark markets Lasalgoan and Pimplegaon have increased from this month.

According to estimates from the Department of Agriculture and Farmers Welfare, Rabi production is 18 percent more than 192 lakh tonnes last year at 227 lakh metric tonnes this year.

Rabi onion, which was 70–75 percent of India’s total onion production, is important for overall availability and stability in prices until the advent of Kharif crop from October/November.

The Food Ministry said, “The estimated high production in this season is expected to further reduce market prices in the coming months.” (AI)

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