The Union ministry of consumer affairs, food and public distribution on Saturday said that the Centre has decided to withdraw a 20 per cent duty on onion export, effective April 1, 2025. The duty was introduced from September 13, 2024.
In a bid to step up domestic availability of onion, the government has taken measures to check exports through minimum export prices, and even export prohibition for almost five months between December 8, 2023 and May 3, 2024.
The ministry said that the move is aimed at ensuring remunerative prices to farmers while maintaining affordability of onion to the consumers at this crucial juncture when both mandi and retail prices have softened following expected arrival of rabi crops in good quantities.
Ministry data showed that onion arrival in benchmark markets Lasalgoan and Pimpalgaon (in Nashik) have increased from this month which drive prices downward. The modal prices in these markets on March 21, 2025 were ₹1,330 per quintal and ₹1,325 per quintal, respectively.
According to the government estimates, rabi production this year at 227 lakh metric tonnes (LMT) is over 18 per cent higher than 192 LMT last year. The rabi onion accounted for 70-75 per cent of India’s total onion production.
