The Government on Saturday (March 22, 2025) introduced the withdrawal of 20% export duty on onions effective from April 1, aiming to guard farmers’ pursuits amid softening costs.
The Department of Revenue issued a notification following communication from the Department of Consumer Affairs, in accordance with an official assertion.
“The decision stands as another testament to the government’s commitment to ensuring remunerative prices to farmers while maintaining affordability of onions to consumers,” the Consumer Affairs Ministry mentioned.
The export duty had been in place since September 2024. Despite export restrictions, complete onion exports reached 1.17 million tonnes by March 18 of the present fiscal yr.
Monthly onion export quantity elevated from 72,000 tonnes in September 2024 to 185,000 tonnes in January this yr.
Onion costs have declined in key rising states attributable to elevated crop arrivals. At Asia’s largest wholesale markets, Lasalgaon and Pimpalgaon in Maharashtra, costs had been ruling at Rs 1,330 per quintal and Rs 1,325 per quintal, respectively, on March 21.
All-India weighted common modal costs fell 39% whereas retail costs dropped 10% over the previous month, the ministry reported.
The agriculture ministry estimates rabi onion output at 22.7 million tonnes this yr, 18% increased than the earlier yr’s 19.2 million tonnes.
Rabi onion, accounting for 70-75% of India’s complete manufacturing, is essential for market stability till kharif crop arrivals start in October-November.
“The estimated higher production this season is expected to further ease market prices in coming months,” the ministry famous.
To guarantee home availability, the federal government had beforehand applied varied export restrictions, together with export prohibition from December 8, 2023, to May 3, 2024, earlier than imposing the 20% duty in September 2024 that has now been eliminated.
Published – March 23, 2025 01:51 am IST
