New Delhi: The Indian government has made a significant announcement regarding the export of onions, declaring the removal of the 20% export duty, which will take effect on April 1, 2025. This decision was conveyed through a notification from the Department of Revenue, following consultations with the Department of Consumer Affairs.
In an effort to protect domestic supply, the government had previously enacted several measures to limit exports, including the imposition of duties, a minimum export price (MEP), and a temporary ban on exports that lasted from December 8, 2023, to May 3, 2024. The 20% export duty, which has now been rescinded, was first introduced on September 13, 2024.
Despite these restrictions on exports, the onion trade has shown resilience, with exports totalling 17.17 lakh metric tons (LMT) during the fiscal year 2023-24, and 11.65 LMT exported by March 18, 2025, in the ongoing fiscal year. Monthly export figures have seen a remarkable increase, climbing from 0.72 LMT in September 2024 to 1.85 LMT in January 2025. This recent policy shift underscores the government’s commitment to balancing fair prices for farmers with the need to keep onions affordable for consumers, particularly as mandi and retail prices have begun to stabilize with the expected influx of a strong rabi crop.
While current mandi prices remain elevated compared to previous years, there has been a significant 39% drop in the all-India weighted average modal prices. Furthermore, average retail prices across the country have decreased by 10% in the last month, driven by a surge in onion arrivals in major markets such as Lasalgoan and Pimpalgaon, which has further exerted downward pressure on prices. On March 21, 2025, the modal prices for onions in Lasalgaon and Pimpalgoan were noted at Rs.1330 per quintal and Rs.1325 per quintal, respectively.
The Department of Agriculture & Farmers Welfare has projected that this year’s rabi production will reach an impressive 227 lakh metric tonnes (LMT), reflecting a significant increase of over 18% from last year’s output of 192 LMT. Rabi onions, which account for 70-75% of India’s total onion production, are crucial for maintaining a steady supply and stabilizing prices until the Kharif crop is harvested around October or November. The expected boost in production this season is likely to lead to a decrease in market prices in the coming months.
This optimistic forecast regarding onion production and pricing brings much-needed relief to the country, which has been grappling with challenges stemming from diminished domestic output and escalating international prices since August 2023. The increase in rabi onion production not only promises to ease the financial burden on consumers but also supports farmers by creating a more favourable market environment. As the nation looks forward to a more stable onion supply, the agricultural sector stands to benefit significantly, fostering a sense of hope and resilience in the face of previous adversities.
– global bihari bureau
