The Indian Government has decided to remove the 20 percent export duty on onions starting from April 1. In a press release, the Department of Revenue announced the decision.
On December 8, 2023, the Centre imposed a ban on onion exports due to a sharp decline in production caused by El Nino weather conditions. However, the ban was lifted before the elections, and a 40 percent export duty was imposed on May 3, 2024. This was later reduced to 20 percent on September 13, 2024.
The decision to eliminate the export duty came after requests from exporters and growers, who were concerned about India losing its market share in the global market. Additionally, onion production is expected to be higher in the current crop year, with the Ministry of Agriculture and Farmers’ Welfare estimating a production of 28.88 million tonnes compared to 24.27 million tonnes last year. However, this is lower than the 30.21 million tonnes produced in 2022-23.
The removal of the export duty also follows a decrease in the modal price of onions, which dropped by ₹850 per quintal from ₹2,270 to ₹1,420 since the beginning of the month.
