Government has announced the removal of the 20% export duty on onions, effective from April 1, 2025. The decision, notified by the Department of Revenue following a communication from the Department of Consumer Affairs.
To ensure domestic availability, the government had previously imposed several restrictions, including export duties, a minimum export price (MEP), and even a temporary export ban from December 8, 2023, to May 3, 2024. The 20% duty, in place since September 13, 2024, has now been lifted, providing relief to onion exporters.
Despite the restrictions, onion exports remained significant. During the financial year 2023-24, exports reached 17.17 lakh metric tonnes (LMT). In the current financial year, up to March 18, 2025, the export volume was recorded at 11.65 LMT. Monthly export volumes surged from 0.72 LMT in September 2024 to 1.85 LMT in January 2025, reflecting a steady rise in demand.
The latest decision comes at a time when mandi and retail onion prices have softened due to the arrival of rabi crops in good quantities. Although mandi prices remain higher than in previous years, the all-India weighted average modal price has seen a 39% decline.
Similarly, retail prices have dropped by 10% over the past month. Increased arrivals in key markets like Lasalgaon and Pimpalgaon have contributed to this downward trend, with modal prices recorded at Rs. 1,330 per quintal and Rs. 1,325 per quintal, respectively, on March 21, 2025.
According to the Department of Agriculture & Farmers Welfare, this year’s rabi onion production is estimated at 227 LMT, an 18% increase compared to last year’s 192 LMT. Rabi onions account for 70-75% of India’s total onion output, playing a key role in maintaining price stability until the kharif crop arrives in October-November.
The improved production and price stability bring much-needed relief after India faced lower domestic output and high global prices since August 2023. The removal of the export duty is expected to further benefit farmers and traders, fostering a more balanced market environment.
