Notification No. 19/2025-Customs (Dated 22nd March 2025)

GOVERNMENT OF INDIA MINISTRY OF FINANCE (Department of Revenue) Notification No. 19/2025-Customs New Delhi, the 22nd March, 2025 G.S.R. ......(E). - In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 27/2011-Customs, dated the 1st March, 2011, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 153(E), dated the 1st March, 2011, namely :-In the said notification, in the TABLE, against S. No. 1, in column (4), for the entry, the entry “nil” shall be substituted. 2. This notification shall come into force from the 1st day of April, 2025. [F. No. 190354/43/2025-TRU] (Dilmil Singh Soach) Under Secretary Note: The principal notification No. 27/2011-Customs, dated the 1st March, 2011, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 153(E), dated the 1st March, 2011, and was last amended vide notification No. 3/2025-Customs, dated the 1st February, 2025, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 96(E), dated the 1stFebruary, 2025.

Analysis of Notification No. 19/2025-Customs (Dated 22nd March 2025)

Key Changes:

• The notification removes the 20% export duty on onions (HS Code: 0703 10) starting from 1st April 2025.

• This amendment modifies Notification No. 27/2011-Customs to make onion exports duty-free.

Impact on Economy & General Public:

✅ Positive Impact on Farmers & Exporters:

• Onion farmers and traders will benefit from increased demand in international markets.

• Higher export prices due to global demand could lead to better earnings for Indian farmers.

✅ Boost to Agricultural Exports:

• India is a major onion exporter, and removing export duties will make Indian onions more competitive globally.

• This move can strengthen India's presence in onion-exporting markets like the Middle East, Southeast Asia, and Europe.

⚠️ Possible Domestic Impact:

• A rise in exports might lead to higher onion prices in the domestic market due to reduced supply.

• The government may need to monitor domestic availability to prevent price spikes for Indian consumers.

Conclusion:

The removal of the 20% export duty on onions is aimed at supporting Indian farmers and boosting exports. However, the government must balance exports with domestic supply to avoid inflation in onion prices for consumers.