New Delhi, Mar 22 (UNI) The government on Saturday withdrew 20 percent export duty on onion export with effect from April one, 2025, in view of 18 percent increase in Rabi production at 227 lakh metric tonnes (LMT) compared to 192 LMT last year.
A notification to this effect was issued by the Department of Revenue today on the communication of Department of Consumer Affairs.
To ensure domestic availability, the government had taken measures to check export by means of duty, minimum export price (MEP) and even to the extent of export prohibition for almost five months, from December eight, 2023, till May three, 2024. The export duty of 20 percent, which now stands removed, had been in place from September 13, 2024.
Despite export restriction, the total onion export during FY 2023-24 was 17.17 LMT and FY 2024-25 (till March 18) was 11.65 LMT. Monthly onion export quantity had picked up from 0.72 LMT in September 2024 to 1.85 LMT in January 2025.
The decision stands as another testament to the government’s commitment to ensuring remunerative prices to farmers while maintaining affordability of onion to the consumers at this crucial juncture when both mandi and retail prices have soften following expected arrival of rabi crops in good quantities.
Even though, the current mandi prices are above the level during corresponding period of previous years, a decline of 39 percent is observed in the all-India weighted average modal prices. Similarly, all-India average retail prices recorded declined of 10 percent over the past one month.
Onion arrival in benchmark markets Lasalgoan and Pimpalgaon have increased from this month, driving prices downward. The modal prices in Lasalgaon and Pimpalgoan on March 21, 2025 were Rs 1,330 per quintal and Rs 1,325/qtl, respectively.
As per the estimates of Department of Agriculture & Farmers Welfare, rabi production this year at 227 LMT is over 18 percent higher than 192 LMT last year.
The rabi onion, which accounted for 70-75 percent of India’s total onion production, is crucial for overall availability and stability in prices till the arrival of kharif crop from October / November onward.
The estimated higher production this season is expected to further ease the market prices in coming months.
The emerging production and prices scenario came as welcome breather for the country which had to grapple with the twin issues of lower domestic production and high international prices from August, 2023, Ministry of Consumer Affairs, Food & Public Distribution statement added.
UNI SKB SS