Know why govt to abolish export duty on export of onions!
After the fall in onion prices, keeping in mind the interests of the farmers, the government has decided to withdraw the 20 percent export duty on onion exports. This decision will be considered effective from april 1, 2025. At present, the government levies 20 percent export tax on the export of onions from the country.
In a notification issued by the Central Board of Indirect Taxes and Customs, it has been told that the central government has decided to make the export duty on onions "zero" in public interest. It has been said that this notification will come into effect from april 1, 2025. In fact, the central government had banned its export in december 2023 in view of the steep rise in onion prices in the country. After this, in May 2024, permission was given to sell onions abroad with a minimum export price limit of $ 550 per tonne and 40 percent export duty. The minimum export price was abolished in september 2024 and the export duty was also reduced to 20 per cent, which has now been decided to be completely abolished.
Despite the export ban, total onion exports during FY 2023-24 have been 17.17 lakh tonnes and in FY 2024-25 (till march 18) 11.65 lakh tonnes. According to the government, the monthly onion export volume has increased from 72 thousand tonnes in september 2024 to 1.85 lakh tonnes in january 2025. The Ministry of Consumer Affairs said, this decision is another testimony to the government's commitment to ensure remunerative prices to farmers and keep onion prices under control for consumers. Wholesale and retail prices have declined following the expectation of good arrivals of Rabi crops.
Even though the current mandi prices are above the levels of the same period of previous years, the all-India weighted average model prices have seen a decline of 39 per cent. Similarly, the all-India average retail prices have declined by 10 per cent in the last one month. The agriculture ministry estimates that the production of rabi onion this year will be 227 lakh tonnes, which is 18 per cent more than last year's 192 lakh tonnes. Rabi onion, which accounts for 70-75 per cent of India's total production, is important for market stability till the arrival of kharif crop in October-November. The ministry said, "The estimate of higher production in this season may lead to further reduction in prices in the coming months.