Central Govt Withdraws 20% Export Duty On Onion, Effective From April 1

New Delhi: Government of India on Saturday has withdrawn 20 per cent export duty on onion, effective from April 1st, 2025 and said the move is aimed at protecting the interest of farmers.

A notification in this regard was been issued by the Department of Revenue on Saturday following a communication from the Department of Consumer Affairs, an official statement said.

Govt Withdraws Duty on Onion

The Consumer Affairs, Food and Public Distribution ministry said, "decision stands as another testament to the government's commitment to ensuring remunerative prices to farmers while maintaining affordability of onion to the consumers at this crucial juncture."

"Both mandi and retail prices have softened following expected arrival of rabi crops in good quantities," it added. 

To secure domestic availability, the government implemented measures such as imposing duties, setting a minimum export price (MEP), and even prohibiting exports for nearly five months, from December 8, 2023, to May 3, 2024.

The export duty on onions has been in place since September 2024. Despite these restrictions, total onion exports reached 11.65 lakh tonnes by March 18 of the current fiscal year. Monthly onion exports increased from 0.72 lakh tonnes in September 2024 to 1.85 lakh tonnes in January 2025.

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“Despite export restriction, the total onion export during FY 2023-24 was 17.17 LMT and FY 2024-25 (till 18th March) was 11.65 LMT. Monthly onion export quantity had picked up from 0.72 LMT in September, 2024 to 1.85 LMT in January, 2025,” the Ministry of Consumer Affairs, Food and Public Distribution said.

Onion prices have dropped in major growing states with the increased arrival of the rabi crop.

This decision reflects the government's commitment to ensuring fair prices for farmers while keeping onions affordable for consumers, especially as both mandi and retail prices have softened due to the expected arrival of a good quantity of rabi crops.

The improved production and price situation provided a welcome relief for the country, which had been struggling with low domestic production and high international prices since August 2023, the Ministry said.