The Central Government has announced the withdrawal of the 20 per cent export duty on onions, effective from April 1. The decision was notified by the Department of Revenue following a communication from the Department of Consumer Affairs, according to an official statement issued on Thursday.
The export duty, initially imposed on September 13, 2024, was part of the government’s efforts to ensure sufficient domestic availability of onions. Over the past several months, the government employed various measures, including export duty, minimum export price (MEP), and even an export prohibition, to curb onion exports. These restrictions were in place for nearly five months, from December 8, 2023, to May 3, 2024.
Despite these curbs, onion exports remained substantial. During the financial year 2023-24, total exports stood at 17.17 lakh metric tonnes (LMT), while exports in the current fiscal (up to March 18, 2025) reached 11.65 LMT. Monthly export volumes also witnessed an uptick, rising from 0.72 LMT in September 2024 to 1.85 LMT in January 2025.
According to the government, the removal of the export duty is aimed at balancing the twin objectives of ensuring remunerative prices for farmers and maintaining affordability for consumers. The official statement noted that mandi and retail prices have softened due to the anticipated arrival of rabi crops in large quantities.
While current mandi prices remain higher compared to the same period last year, there has been a 39 per cent decline in the all-India weighted average modal prices. Similarly, retail onion prices have registered a 10 per cent drop over the past month.
Onion arrivals in key benchmark markets, including Lasalgaon and Pimpalgaon, have increased significantly, contributing to the downward pressure on prices. As of March 21, modal prices in Lasalgaon and Pimpalgaon stood at ₹1,330 per quintal and ₹1,325 per quintal, respectively.
Estimates from the Department of Agriculture & Farmers Welfare indicate that rabi onion production this year is expected to reach 227 LMT, marking an 18 per cent increase compared to 192 LMT last year. Rabi onions account for nearly 70-75 per cent of the country’s total onion production and play a crucial role in stabilizing prices until the kharif crop arrives later in the year.
