Government Lifts 20% Export Duty on Onions

On 20th March 2025, the Central Government announced the removal of the 20% export duty on onions, effective 1st April, to support farmers while maintaining consumer affordability.

Key Points

Background: The export duty, imposed on September 13, 2024, aimed to ensure domestic onion availability.
Export Trends: Despite restrictions, India exported 17.17 LMT onions in 2023-24 and 11.65 LMT in the current fiscal (up to March 18, 2025).
Market Impact: Mandi and retail prices have softened due to the expected arrival of a bumper rabi crop.
Price Trends: All-India weighted average modal prices have dropped by 39%, with retail prices falling 10% over the past month.
Production Boost: Rabi onion production is estimated at 227 LMT, an 18% increase from last year, ensuring stable supply until the kharif harvest.