The Central Government vide notification no. 48/2023-Customs, G.S.R. 617(E) issued on 19th August 2023 have imposed 40% customs duty on export of onions to control rise in prices with immediate effect up to 31st December 2023.
Under the authority vested by subsection (1) of section 25 of the Customs Act, 1962 (52 of 1962), and upon determining that it is necessary for the greater public good, the Central Government hereby grants an exemption to the goods defined in column (3) of the following Table. These goods fall under the Chapter, heading, sub-heading, or tariff item of the Second Schedule to the Customs Tariff Act, 1975 (51 of 1975), as stated in the corresponding entry in column (2) of the mentioned Table.
This exemption applies when these goods are exported out of India, relieving them from an excessive customs duty chargeable under the aforementioned Second Schedule. The relieved duty amount shall be determined based on the duty rate specified in the corresponding entry in column (4) of the mentioned Table.
TABLE
| S. No. | Sub-heading or tariff item | Description of goods | Rate of duty |
| (1) | (2) | (3) | (4) |
| 1. | 0703 10 | Onions | 40% |
Furthermore, through notification number No. 47/2023-Customs, G.S.R. 616(E), the government has introduced changes to the Second Schedule of the Customs Tariff Act, 1975. In this Second Schedule, Serial Number 1 will be re-designated as Serial Number 1A. Preceding the re-designated Serial Number 1A, the subsequent serial number and corresponding details given below shall be included.
| (1) | (2) | (3) | (4) |
| 1 | 0703 10 | Onions | 50% |
In its report released on August 4th, 2023, the credit rating agency Crisil had forecasted that onion prices might reach the range of 60-70 rupees per kilogram by the conclusion of the current month, and possibly even higher during the following month of September.
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