Government Removes 20% Duty On Onion Exports From April 1

The government has withdrawn the 20% export duty on onions, effective April 1. The move aims to balance domestic availability and ensure better prices for farmers.

To control supply, the government had imposed export restrictions through duties, a minimum export price (MEP), and even a ban from December 8, 2023, to May 3, 2024.

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The 20% export duty, in place since September 13, 2024, has now been lifted, the Department of Revenue confirmed.

Despite these restrictions, onion exports remained significant. India exported 17.17 lakh metric tonnes (LMT) in FY 2023-24 and 11.65 LMT in FY 2024-25 (until March 18).

Monthly exports rose from 0.72 LMT in September 2024 to 1.85 LMT in January 2025.

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The Ministry of Consumer Affairs stated that the decision reflects the government’s commitment to providing farmers with fair prices while keeping onions affordable for consumers.

The recent arrival of rabi crops in good quantities has led to softened mandi and retail prices.

While current mandi prices remain higher than last year’s levels, the all-India weighted average modal price has dropped by 39%. Retail prices have also declined by 10% over the past month.

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