
The government has amended the Customs Notification No. 27/2011, removing the duty on a specific item (S. No. 1 in the table). This means the applicable duty rate will now be nil. The change is made in the public interest and will be effective from April 1, 2025. The amendment follows a similar update issued in February 2025. This update was issued by the Ministry of Finance, under the Customs Act, 1962.
Key Points:
20% Export Duty Removed: The Government of India has withdrawn the 20% duty on onion exports, effective April 1, 2025.
Government Measures for Domestic Availability: Earlier restrictions included export duty, Minimum Export Price (MEP), and even an export ban (December 8, 2023 โ May 3, 2024).
Previous Export Duty Timeline: The 20% export duty was imposed on September 13, 2024, to regulate domestic supply.
Onion Export Data:
FY 2023-24: 17.17 LMT exported.
FY 2024-25 (till March 18, 2025): 11.65 LMT exported.
Monthly exports increased from 0.72 LMT (September 2024) to 1.85 LMT (January 2025).
Current Market Trends:
Mandi and retail prices softened due to expected rabi onion arrivals.
Lasalgaon price on March 21, 2025: โน1,330/qtl, Pimpalgaon: โน1,325/qtl.
Higher Rabi Production:
Estimated at 227 LMT, which is 18% higher than last yearโs 192 LMT.
Rabi onion (70-75% of total production) is key to price stability till the kharif crop arrives (October-November).
Impact on Prices:
All-India weighted modal mandi prices dropped by 39%.
All-India average retail prices declined by 10% in the past month.
Relief for Consumers & Farmers: The decision balances remunerative prices for farmers while keeping onion affordable for consumers.
Notification Reference: Customs
Notification No. 19/2025-Customs
22/03/2025