Government lifts ban on onion export, imposes 40 percent duty

The Central Government on Friday removed the ban on export of onion and imposed a duty of 40 percent on this export, which will be applicable with immediate effect from May 4. Earlier, to prevent onion shortage in the country due to lower production of Dungvi in ​​Kharif and Rabi seasons in 2023-24 compared to the previous year and increasing demand in the international market, the government banned its export on December 8, 2023. Was. The government has also allowed import of indigenous gram without any duty till March 31, 2025.

The Director General of Foreign Trade, Ministry of Commerce and Industry of the Central Government issued a notification on Friday, putting onion from restricted to free category under the export policy. Apart from this, the ministry has also set the minimum export price for onion export at $550 per tonne. At present there is a ban on export of onion from the country, but the government has allowed export to some countries with which India has friendly relations. This type of export is allowed within certain quantity limits in UAE, Bangladesh, Bhutan, Bahrain, Mauritius and Sri Lanka. The government thus allowed a total of 99,150 tonnes of onion to be exported during the export ban period and the majority of these exports were from Maharashtra.

Earlier, the government had imposed 40 per cent export duty on onion exports in August 2023 due to rising prices and reduced supply in the domestic market, which remained in force until a complete export ban was imposed in December.