The central government has officially withdrawn the 20 per cent export duty on onions, effective from April 1, 2025. This decision was communicated through a notification issued by the Department of Revenue based on the recommendation of the Department of Consumer Affairs. The move is expected to provide significant relief to onion exporters.
To maintain domestic availability and control prices, the government implemented stringent measures, including export duties, a minimum export price (MEP), and even a complete export prohibition. These restrictions lasted for nearly five months, from December 8, 2023, to May 3, 2024. The 20% export duty that has now been removed was imposed on September 13, 2024.
Onion export trends despite restrictions
Despite the export restrictions, India managed to export substantial quantities of onions. In FY 2023-24, total onion exports reached 17.17 lakh metric tonnes (LMT), while FY 2024-25 (up to March 18, 2025) recorded exports of 11.65 LMT. Notably, monthly export volumes surged from 0.72 LMT in September 2024 to 1.85 LMT by January 2025, indicating sustained global demand.
The decision to withdraw the export duty reflects the government’s commitment to ensuring fair prices for farmers while maintaining affordability for consumers. Recent market data shows a 39% decline in all-India weighted average modal prices compared to the same period in previous years. Additionally, retail onion prices have dropped by 10% over the past month, providing much-needed relief to consumers.
Record rabi production
According to the Department of Agriculture & Farmers Welfare, rabi onion production this year is estimated at 227 LMT, an 18% increase over last year’s 192 LMT. Rabi onions, which constitute 70-75% of India’s total onion production, play a crucial role in stabilising prices until the kharif crop arrives in October-November.
The higher rabi production is expected to further ease market prices in the coming months. This comes as a welcome relief for the country, which faced the twin challenges of lower domestic production and high international prices from August 2023. With the removal of export duties, onion exporters are likely to benefit from increased competitiveness in global markets.