The Indian government, in a major action, has made the 20% export duty on onions obsolete from April 1, 2025. This has been announced through a notification issued by the Department of Revenue as the domestic supply of onions is improving with a bumper rabi crop, expected to be around 227 lakh metric tonnes, an 18% hike compared to the last year. The government had earlier levied the duty in September 2024 to calm local prices in the face of declining production and elevated global prices.
With exports of onions increasing from 0.72 lakh metric tonnes in September 2024 to 1.85 lakh metric tonnes in January 2025, this change in policy is to benefit farmers and help consumers get onions at low prices. The recent market figures indicate a fall in wholesale as well as retail prices of onions, bringing relief to consumers in time for the kharif season.
Source: CNBC TV18, Money Control, The Financial Express