The 40 per cent export duty had been in place since May 4 (Representational)
The government on Friday cut the duty on onion export to 20 per cent from 40 per cent.
The duty cut will be effective from Saturday, the finance ministry said in a notification.
The 40 per cent export duty had been in place since May 4.
Earlier in the day, the government removed the minimum export price of USD 550 per tonne on onion to boost outbound shipment and enhance farmers' incomes.
India exported 2.6 lakh tonnes of onions till July of this fiscal. The country had exported 16.07 lakh tonnes of onions in the last fiscal.
The decision to remove the minimum export price on onion was taken despite high retail prices of this key kitchen staple.
According to data compiled by the Department of Consumer Affairs, the all-India average price of onion on Friday was Rs 50.83 per kg while the modal price was Rs 50 per kg.
The maximum price of onion was Rs 83 per kg and the lowest Rs 28 per kg.
On September 5, the Centre began the first phase of retail sales of onion at a subsidised rate of Rs 35 per kg to provide relief to consumers in Delhi-NCR and Mumbai.
The finance ministry, through a notification, also extended by two months the duty exemption on imports of yellow peas covered by bill of entry issued on or before December 31.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)