SF Prep Notes

Centre withdraws 20% export duty on onions with effect from 1 April 2025

The Department of Revenue issued Notification No. 19/2025-Customs on 22 March 2025, making the export duty on onions nil from 1 April 2025 and ending the 20% duty in force since 13 September 2024.

Summary

The Government of India withdrew the 20% export duty on onions with effect from 1 April 2025. The Department of Revenue issued Notification No. 19/2025-Customs on 22 March 2025 under Section 25(1) of the Customs Act, 1962, amending Notification No. 27/2011-Customs to make the duty on onions (HS 0703 10) nil, on the request of the Department of Consumer Affairs. The 20% duty had been in place since 13 September 2024, after onion exports were prohibited from 8 December 2023 to 3 May 2024. The government said mandi prices had fallen 39% and retail prices 10% over a month, and that rabi onion output was estimated at 227 lakh tonnes, over 18% above last year's 192 lakh tonnes. Exports in 2024-25 (to 18 March) were 11.65 lakh tonnes.

Key facts

Notified
22 March 2025, Notification No. 19/2025-Customs
Effective
1 April 2025
Duty removed
20% (in force since 13 September 2024)
Legal power
Section 25(1), Customs Act, 1962
Earlier ban
8 December 2023 to 3 May 2024
Rabi output 2025
227 LMT, up over 18% from 192 LMT

Practice MCQs 4 questions

Q1

From which date did the Centre withdraw the 20% export duty on onions, as notified on 22 March 2025?

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Correct answer: B — 1 April 2025

The notification issued on 22 March 2025 made the onion export duty nil with effect from 1 April 2025.

Q2 Advanced

Since when had the 20% export duty on onions, withdrawn in March 2025, been in force?

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Correct answer: C — 13 September 2024

The 20% duty had been in place from 13 September 2024. Exports were prohibited earlier, from 8 December 2023 to 3 May 2024.

Q3 Advanced

What was the estimated rabi onion production for 2025, cited when the onion export duty was withdrawn in March 2025?

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Correct answer: B — 227 lakh tonnes

Rabi production was estimated at 227 lakh metric tonnes, over 18% higher than 192 LMT the previous year.

Q4 Advanced

Consider the following statements about the withdrawal of the onion export duty in March 2025: 1. It was done through a notification issued under Section 25(1) of the Customs Act, 1962. 2. The notification was issued by the Department of Commerce. Which of the above is/are correct?

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Correct answer: A — 1 only

Notification No. 19/2025-Customs was issued by the Department of Revenue (Ministry of Finance) under Section 25(1) of the Customs Act, 1962, on the communication of the Department of Consumer Affairs.

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