NEW DELHI: The Government of India has announced the withdrawal of the 20% duty on onion exports, effective from April 1, 2025. The decision, communicated by the Department of Consumer Affairs, was officially notified by the Department of Revenue on Saturday.
The export duty, imposed on September 13, 2024, was among several measures taken by the government to ensure domestic availability of onions. These included a minimum export price (MEP) and an outright export ban from December 8, 2023, to May 3, 2024. Despite these restrictions, Indiaโs onion exports remained significant, reaching 17.17 lakh metric tonnes (LMT) in FY 2023-24 and 11.65 LMT in FY 2024-25 (up to March 18). Monthly exports saw a steady increase, from 0.72 LMT in September 2024 to 1.85 LMT in January 2025.
Production and Price Trends
The governmentโs move comes at a time when onion prices are stabilizing, with mandi and retail prices softening due to the arrival of rabi crops in good quantities. While current mandi prices remain higher than last yearโs corresponding period, a decline of 39% has been observed in the all-India weighted average modal prices. Similarly, retail prices have dropped by 10% over the past month.
In major onion markets like Lasalgaon and Pimpalgaon, arrivals have increased this month, further pushing prices downward. As of March 21, 2025, the modal price in Lasalgaon stood at โน1,330 per quintal, while in Pimpalgaon, it was โน1,325 per quintal.
Rabi Production Expected to Boost Supply
According to estimates by the Department of Agriculture & Farmers Welfare, Indiaโs rabi onion production for 2025 is expected to be 227 LMT, marking an 18% increase from last yearโs 192 LMT. Since rabi onions account for 70-75% of Indiaโs total onion production and sustain supply until the kharif crop arrives in October-November, this higher yield is expected to bring further stability to prices.
The latest production and pricing trends provide relief to the market, which had struggled with lower domestic output and high international onion prices since August 2023. The government maintains that the withdrawal of the export duty is aimed at balancing farmer incomes while ensuring affordability for consumers.
