The Government of India has decided to remove the 20% export duty on onions, starting from April 1, 2025. This is great news for onion farmers, as it will allow them to sell their onions in international markets without any extra charges, creating more opportunities for higher earnings.
Government’s Decision to Remove Export Duty
On March 22, 2025, the Department of Revenue issued a notification confirming the removal of the 20% export duty on onions, effective April 1, 2025. This is part of the government’s efforts to support farmers while maintaining fair prices for consumers.
Background
In the past, due to high onion prices, the government took several steps to ensure there was enough supply in the domestic market. On September 13, 2024, the government introduced a 20% export duty to control exports and manage high onion prices. Along with this, the government also set a minimum export price (MEP) for onions. To further regulate the situation, the government imposed a complete export ban from December 8, 2023, to May 3, 2024. These steps were taken to protect the domestic supply of onions.
Current Situation: Things are Looking Better
Now, the situation has improved. According to the Department of Agriculture & Farmers Welfare, India’s rabi onion production for 2025 is expected to reach 227 lakh metric tonnes (LMT), which is an 18% increase compared to last year. Since rabi onions account for 70-75% of India’s total onion production, this increase is expected to help stabilize onion prices in the coming months.
Price Trends and Market Updates
There has been an increase in the arrival of onions at key markets like Lasalgaon and Pimpalgaon, which has contributed to a decrease in prices. On March 21, 2025, the modal prices stood at:
- Lasalgaon: ₹1,330 per quintal
- Pimpalgaon: ₹1,325 per quintal
Recent market trends also show:
- A 39% drop in the all-India weighted average modal price
- A 10% decline in retail prices over the past month
These trends indicate that onion prices are gradually stabilizing, benefiting both consumers and farmers.
Opportunity for Indian Farmers
With higher rabi production this year and the removal of export duty, Indian farmers now have a great opportunity. The demand for Indian onions in the global market remains strong, as shown by exports of 17.17 LMT in FY 2023-24 and 11.65 LMT up until March 18, 2025, despite the export duty. With increased production and no export duty, farmers can now take advantage of both higher domestic supply and international market demand, opening up more avenues for higher profits.
