Daijiworld Media Network - New Delhi

New Delhi, Mar 22: The government has announced the removal of the 20% export duty on onions, effective April 1, marking a shift in its trade policy aimed at balancing domestic supply and farmer earnings.

Over the past five months, authorities had imposed several restrictions, including export duties, a minimum export price (MEP), and a temporary ban to stabilize onion availability within the country. These measures were in place from December 8, 2023, to May 3, 2024. The now-revoked 20% export duty had been enforced since September 13, 2024, according to the Department of Revenue.

Despite these restrictions, onion exports remained substantial. In FY 2023-24, total exports reached 17.17 lakh metric tonnes (LMT), while in FY 2024-25 (up to March 18), exports stood at 11.65 LMT. The volume of monthly exports increased from 0.72 LMT in September 2024 to 1.85 LMT by January 2025, indicating a steady demand in international markets.

The Ministry of Consumer Affairs emphasized that the decision reflects the government’s commitment to ensuring fair prices for farmers while keeping onion prices affordable for consumers. With rabi crops arriving in good quantities, both wholesale and retail prices have softened, making it an opportune time to ease export restrictions.

Although current wholesale market prices remain higher than in previous years, a 39% decline has been observed in the all-India weighted average modal prices. Similarly, retail onion prices have dropped by 10% over the past month, offering relief to consumers.

The withdrawal of export duty signals a strategic adjustment, balancing farmer interests with consumer affordability as the agricultural cycle progresses.