Government Lifts Export Duty on Onions to Support Farmers

The government has removed a 20% export duty on onions starting April 1, 2024, to support farmers. This decision follows a notification from the Department of Revenue and aligns with the expected arrival of the rabi crop. The onion export duty was enacted in September 2024.

The government announced the withdrawal of the 20% export duty on onions effective April 1, with the aim of safeguarding farmers' interests. The move was officially communicated through a notification by the Department of Revenue.

This decision is in response to a directive from the Department of Consumer Affairs and reflects the government's ongoing commitment to providing farmers with fair prices while ensuring onion affordability for consumers. The action comes at a critical time, as both mandi and retail onion prices have dropped due to the anticipated influx of the rabi crop.

The export duty, initially imposed in September 2024, did not significantly hinder onion exports, with a total of 11.65 lakh tonnes exported by mid-March. Monthly export volumes increased from 0.72 lakh tonnes in September 2024 to 1.85 lakh tonnes in January 2025, coinciding with a fall in onion prices in major growing regions.

(With inputs from agencies.)