New Delhi, Mar 22 (PTI) The government on Saturday withdrew 20 per cent export duty on onion effective from April 1 and said the move is aimed at protecting the interest of farmers.

A notification in this regard has been issued by the Department of Revenue following a communication from the Department of Consumer Affairs, an official statement said.

"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 softened following expected arrival of rabi crops in good quantities," the consumer affairs ministry said.

The export duty has been in place since September 2024. However, despite restrictions, total onion export reached 11.65 lakh tonnes till March 18 of the current fiscal year.

Monthly onion export quantity had picked up from 0.72 lakh tonne in September 2024 to 1.85 lakh tonne in January this year.

Onion prices have fallen in key growing states due to increase in the arrival of the rabi crop. PTI LUX TRB

Export duty withdrawal on onion restores duty-free exports, aiming to protect farmers while maintaining consumer affordability. Withdrawal of the 20% export duty on onion effective April 1 is effected by an administrative notification from the revenue administration following communication from consumer affairs. The measure removes the existing export tax on onions, aims to balance producer remunerative prices with consumer affordability amid rabi arrivals and softening prices, and alters export regulation and market incentives after a period in which the duty had been operative since September 2024.