The Government of India has decided to remove the 20% export duty on onions, effective from April 1, 2025. The Department of Revenue, under the Ministry of Finance, issued a notification today based on communication from the Department of Consumer Affairs.
To maintain sufficient onion availability in the domestic market, the government had implemented export control measures, including export duty, Minimum Export Price (MEP), and export bans. These restrictions were in effect for nearly five months, from December 8, 2023, to May 3, 2024. The 20% export duty, which was imposed on September 13, 2024, has now been lifted.
Export and Price Trends: During the financial year 2023-24, India exported a total of 17.17 lakh metric tonnes (LMT) of onions, while in FY 2024-25 (until March 18), exports stood at 11.65 LMT. Export volumes increased from 0.72 LMT in September 2024 to 1.85 LMT in January 2025.
The government aims to ensure fair prices for farmers while keeping onions affordable for consumers. Currently, onion prices in both wholesale and retail markets have softened due to the expected arrival of a good rabi crop. Although mandi prices are still higher compared to the same period last year, the all-India weighted average modal prices have dropped by 39%. Similarly, retail prices have declined by 10% over the past month.
Onion arrivals have increased in key markets such as Lasalgaon and Pimpalgaon this month, leading to a downward price trend. As of March 21, 2025, the modal price of onions was ₹1,330 per quintal in Lasalgaon and ₹1,325 per quintal in Pimpalgaon.
According to estimates by the Ministry of Agriculture & Farmers Welfare, rabi onion production is expected to reach 227 LMT this year, marking an 18% increase compared to last year's 192 LMT. Since rabi onions account for 70-75% of India's total onion production, they play a crucial role in maintaining price stability until the arrival of the next kharif crop in October-November. The increased production is expected to further ease market prices in the coming months.
Increased Production Brings Relief to the Market: Since August 2023, the country has faced dual challenges of lower domestic production and high international prices. The recent increase in onion production and declining prices provide much-needed relief. This decision by the government is expected to benefit both farmers and consumers alike.
