Export Duty on Onion to Be Removed from April 1, 2025, After Months of Restrictions

The Central Government has decided to remove the 20% export duty on onions, effective April 1, 2025. The duty was initially imposed in September 2024 to ensure sufficient domestic supply and control rising prices. Despite the restrictions, onion exports continued to rise significantly over the past few months.

The decision to withdraw the duty was officially announced by the Department of Revenue, following a communication from the Department of Consumer Affairs. The move is expected to benefit onion farmers and traders, especially in Maharashtra, where Nashik is a key onion-producing region.

Over the past five months, the government had implemented several restrictions to regulate onion exports, including:

• Export duty (20%) imposed in September 2024

• Minimum export price (MEP) to control overseas sales

• Complete export ban from December 8, 2023, to May 3, 2024

A key factor behind lifting the duty is the 18% increase in Rabi onion production, which has stabilized prices in the domestic market. With supply improving, the government has now eased restrictions, allowing free export of onions from April 1.

This decision is expected to bring relief to onion farmers, who have been demanding the removal of export curbs to fetch better prices in the international market.