Government Lifts 20% Export Duty on Onions Effective April 1
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Synopsis
On March 22, the Indian government announced the removal of the 20% export duty on onions, effective April 1. This move aims to support farmers while ensuring affordable prices for consumers amid declining onion prices.
Key Takeaways
- 20% export duty on onions has been lifted.
- Effective from April 1, 2024.
- Previous restrictions included a total export ban.
- Onion exports totaled 17.17 LMT for FY 2023-24.
- Retail onion prices have decreased by 10% recently.
New Delhi, March 22 (NationPress) The government on Saturday removed the 20 percent duty on onion exports, starting April 1.
In order to maintain domestic supply, the government had implemented measures to limit exports through duties, a minimum export price (MEP), and even a complete export ban for nearly five months, from December 8, 2023, to May 3, 2024.
The export duty of 20 percent that has now been eliminated was first introduced on September 13, 2024, as stated by the Department of Revenue.
Despite the restrictions on exports, the total quantity of onions exported during FY 2023-24 reached 17.17 LMT, and for FY 2024-25 (up to March 18), it was 11.65 LMT.
The government noted that the monthly export volume of onions increased from 0.72 LMT in September 2024 to 1.85 LMT in January 2025.
“This decision reflects the government’s dedication to ensuring fair prices for farmers while keeping onion prices accessible for consumers at this critical time, especially as both mandi and retail prices have decreased due to the anticipated arrival of rabi crops in substantial amounts,” stated the Ministry of Consumer Affairs.
Although current mandi prices are higher than those in the same period last year, there has been a 39 percent decline in all-India weighted average modal prices.
In a similar vein, the all-India average retail prices have dropped by 10 percent over the last month.
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