Centre Lifts 20% Duty On Onion Exports, Effective April 1st

Despite these restrictions, onion exports for the fiscal year 2023-24 totaled 17.17 LMT, and for FY 2024-25 (up to March 18), the figure reached 11.65 LMT

To safeguard domestic supply, the government had implemented various measures to restrict onion exports

Source : PTI

The government has lifted the 20 per cent export duty on onions, effective from April 1, 2025. A notification confirming this decision was issued by the Department of Revenue on Saturday, based on the communication from the Department of Consumer Affairs.

To safeguard domestic supply, the government had implemented various measures to restrict onion exports, including the duty, a minimum export price (MEP), and even a ban on exports for nearly five months, from December 8, 2023, to May 3, 2024. The 20 per cent export duty, which has now been removed, was in place since September 13, 2024.

Despite these restrictions, onion exports for the fiscal year 2023-24 totaled 17.17 LMT, and for FY 2024-25 (up to March 18), the figure reached 11.65 LMT. Monthly exports increased from 0.72 LMT in September 2024 to 1.85 LMT in January 2025, according to the official statement.

Maintain Affordability

This move highlights the government's ongoing efforts to ensure fair prices for farmers while maintaining the affordability of onions for consumers. This comes at a critical time when both wholesale and retail onion prices have softened due to the anticipated arrival of the rabi crop in good quantities. Although current wholesale prices remain higher compared to the same period last year, there has been a 39 per cent drop in the all-India weighted average modal prices. Similarly, the all-India average retail prices have seen a 10 per cent decline over the past month.

Onion arrivals in key markets such as Lasalgoan and Pimpalgaon have increased this month, leading to a decline in prices. On March 21, 2025, the modal prices in Lasalgaon and Pimpalgaon were Rs. 1,330 per quintal and Rs. 1,325 per quintal, respectively. According to estimates from the Department of Agriculture & Farmers Welfare, this year's rabi onion production is projected at 227 lakh metric tonnes (LMT), which is over 18 per cent higher than last year’s 192 LMT. Rabi onions, which make up 70-75 per cent of India’s total onion production, are critical for ensuring overall availability and price stability until the kharif crop arrives in October/November. The anticipated increase in production this season is expected to further ease market prices in the coming months.