Export Duty
Govt removes 20% duty on onion exports, effective from Apr 1
This story was originally published at 15:41 IST on 23 March 2025
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MUMBAI – The Centre has withdrawn the 20% duty on onion exports, effective from Apr. 1, according to a release by the Ministry of Consumer Affairs, Food and Public Distribution on Saturday. The government has taken this decision amid expectation of higher onion production.
According to the first advance estimate released by the Department of Agriculture and Farmers' Welfare, onion production for 2024-25 (Jul-Jun) is seen at 28.9 million tonnes, up 19% on year. Rabi onion production, which accounts for 70-75% of India's total onion output, was up 18% on year at 22.7 million tonnes. "The estimated higher production this season is expected to further ease the market prices in coming months," the release said.
To ensure the domestic availability, the government had banned onion exports on Dec. 8, 2023. The Centre in May had lifted the ban on onion exports but imposed a minimum export price of $550 per tonne and a 40% export duty. In September, the government had removed the minimum export price stipulation and reduced the duty on onion exports to 20%. End
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Reported by J. Navya Sruthi
Edited by Akul Nishant Akhoury
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