The Government of India has announced the withdrawal of the 20% export duty on onions, effective from April 1, 2025. This decision, communicated by the Department of Consumer Affairs and formalized through a notification issued by the Department of Revenue, aims to support onion farmers while ensuring the affordability of the essential commodity for consumers.
The government had previously implemented measures to curb onion exports to ensure domestic availability. These measures included imposing an export duty, setting a minimum export price (MEP), and even a complete export ban for nearly five months, from December 8, 2023, to May 3, 2024. The 20% export duty, which is now being removed, was in place since September 13, 2024.
Despite the export restrictions, India managed to export a total of 17.17 Lakh Metric Tonnes (LMT) of onions during the fiscal year 2023-24. In the current fiscal year 2024-25, onion exports reached 11.65 LMT as of March 18th. Monthly export quantities have seen an uptick, rising from 0.72 LMT in September 2024 to 1.85 LMT in January 2025.
Price Trends and Rabi Crop Outlook
While current mandi prices remain above those of the corresponding period in previous years, a notable decline of 39% has been observed in the all-India weighted average modal prices. Similarly, the all-India average retail prices have decreased by 10% over the past month. Increased onion arrivals in benchmark markets like Lasalgaon and Pimpalgaon this month have further contributed to the downward price trend. On March 21, 2025, the modal prices in Lasalgaon and Pimpalgaon were ₹1330 per quintal and ₹1325 per quintal, respectively.
The Department of Agriculture & Farmers Welfare estimates that the rabi onion production this year will reach 227 LMT, which is over 18% higher than the 192 LMT produced last year. The rabi crop accounts for 70-75% of India’s total onion production and is crucial for price stability until the arrival of the kharif crop in the October/November period. The expected higher production this season is anticipated to further ease market prices in the coming months.
The improved production and price scenario comes as a welcome relief for the country, which had faced challenges of lower domestic production and high international prices starting from August 2023. The removal of the export duty is expected to provide further support to farmers and ensure a stable supply of onions for consumers.
