New Delhi [India]: The central government has officially withdrawn the 20% export duty on onions, which was imposed in September 2024 to stabilize domestic supply and prices. The new policy will come into effect on April 1, 2025, according to a Department of Revenue notification issued after a communication from the Department of Consumer Affairs.
To ensure adequate onion availability in the domestic market, the government had previously implemented export restrictions, including minimum export price (MEP), export duties, and a temporary export ban. The most stringent measure was in place from December 8, 2023, to May 3, 2024, when onion exports were completely prohibited.
The 20% export duty, now removed, was imposed on September 13, 2024 to discourage excessive exports. Despite these restrictions, India managed to export 17.17 lakh tonnes of onions in 2023-24 and 11.65 lakh tonnes in 2024-25 (till March 18).
According to government data, monthly onion exports rose significantly from 0.72 lakh tonnes in September 2024 to 1.85 lakh tonnes in January 2025.
The Ministry of Consumer Affairs, Food & Public Distribution justified the removal of the duty, stating:
“The decision stands as another testament to the government’s commitment to ensuring remunerative prices to farmers while maintaining affordability of onion to the consumers at this crucial juncture when both mandi and retail prices have softened following expected arrival of rabi crops in good quantities.”
Despite the overall price drop, the ministry noted that mandi prices remain higher than the previous year’s corresponding period. However, a 39% decline has been observed in the all-India weighted average modal prices, while retail prices have fallen by 10% over the past month.
Onion arrivals at major markets like Lasalgaon and Pimpalgaon have also increased this month.
As per Department of Agriculture and Farmers Welfare estimates, rabi onion production for 2025 is projected at 227 lakh metric tonnes, which is 18% higher than last year’s 192 lakh tonnes. Since rabi onions account for 70-75% of India’s total onion production, the increase in supply is expected to help stabilize prices until the next kharif crop arrives in October/November.
“The estimated higher production this season is expected to further ease the market prices in coming months,” the food ministry added.