Relief for farmers, exporters as govt scraps 20% export duty on onions

The government has lifted the 20 per cent export duty on onions, effective from April 1, 2025. A notification confirming this decision was issued by the Department of Revenue on Saturday, based on the communication from the Department of Consumer Affairs.

To safeguard domestic supply, the government had implemented various measures to restrict onion exports, including the duty, a minimum export price (MEP), and even a ban on exports for nearly five months, from December 8, 2023, to May 3, 2024. The 20 per cent export duty, which has now been removed, was in place since September 13, 2024.

Despite these restrictions, onion exports for the fiscal year 2023-24 totaled 17.17 LMT, and for FY 2024-25 (up to March 18), the figure reached 11.65 LMT. Monthly exports increased from 0.72 LMT in September 2024 to 1.85 LMT in January 2025, according to the official statement.