Jul 14, 2025 The Indian government has withdrawn the 20% export duty on onions, effective April 1, 2025, according to PIB. This decision aims to support onion farmers by ensuring better prices, particularly as the rabi crop arrives and prices soften. The export duty was initially imposed in September 2024 and has now been removed, eliminating restrictions on onion exports after 1.5 years.
Key Details:
Duty Removed:
The 20% export duty on onions, which was in place since September 2024, has been removed.
Effective Date:
The removal of the duty is effective from April 1, 2025.
Government Motivation:
The decision is aimed at ensuring remunerative prices for farmers and maintaining affordable onion prices for consumers.
Impact on Farmers:
This move is expected to benefit onion farmers, especially with the arrival of the rabi crop and the subsequent softening of prices.
Previous Restrictions:
The removal of the duty ends a period of restrictions on onion exports, including a minimum export price and export duties.
Market Prices:
While mandi prices are currently above levels from previous years, a decline in prices has been observed, and retail prices have also decreased.
Arrivals in Key Markets:
Increased onion arrivals in Lasalgaon and Pimpalgaon, key markets, have also contributed to the price decline.
