New Delhi:
The government has decided to abolish 20 percent export duty on onions from April 1 this year. The notification issued by the Central Indirect Taxes and Customs Board (CBITC) on Saturday evening states that the central government is “satisfied with the fact that it is necessary to do so in the public interest” has decided to “export duty on onion”. It states that this notification will be applicable from 1 April 2025.

Currently, 20 percent export duty on onions is applicable. The central government banned its exports in December 2023 in view of the huge rise in onion prices in the country. After this, in May 2024, it was allowed to sell onions abroad with a minimum export price limit of minimum $ 550 per ton and 40 percent export duty.

The minimum export price was terminated in September 2024 and the export duty was also reduced to 20 percent. Despite the export ban, the total onion exports during the financial year 2023-24 was 17.17 lakh tonnes and in FY 2024-25 (till March 18) 11.65 lakh tonnes.

According to the government, the monthly onion export quantity has increased from 72 thousand tons in September 2024 to 1.85 lakh tonnes in January 2025. The Ministry of Consumer Affairs said, “This decision is another proof of the government’s commitment to ensure beneficial prices for farmers and keep the price of onion for consumers. Both mandi and retail prices have reduced after good amount of Rabi crops have reduced in the price.”

Even though, the current market prices are above the level of the same period previous years, but the All India weighted average model prices have seen a decline of 39 percent. Similarly, the All India average retail prices declined by 10 percent in the last one month.

(Tagstotranslate) onion