In a significant move, the Government of India has announced the withdrawal of the 20% duty on onion exports, effective April 1, 2025.
This decision, communicated through a notification by the Department of Revenue, comes after a five-month phase of export restrictions aimed at ensuring domestic availability and price stability.
The government had imposed export duties, minimum export prices (MEP), and even temporary prohibitions to combat supply issues since December 2023. Despite these measures, onion exports reached an impressive 17.17 LMT in FY 2023–24 and 11.65 LMT by March 18, 2025, in the current fiscal year. Export momentum saw a significant boost in January 2025, with monthly export quantities rising to 1.85 LMT.
The decision aligns with the government’s commitment to offering farmers remunerative prices while ensuring affordability for consumers. Following expected rabi crop arrivals, prices in both wholesale and retail markets have softened. A robust rabi onion production estimate of 227 LMT—18% higher than last year’s 192 LMT—further strengthens the outlook for price stability.
This withdrawal comes as a welcome development, reflecting India’s resilient agricultural policies amidst global supply challenges.
