The Government of India has decided to remove 20% export duty on onions from 1 April 2025. The Revenue Department of the Finance Ministry has issued its notification. This fee was earlier levied to maintain onion supply in the domestic market. Along with this, a ban on minimum export price (MEP) and exports from December 2023 to May 2024 was also implemented. Now the government has taken a step towards giving relief to farmers and exporters by removing this fee.
Export figures and changes
Despite the restrictions, India exported 17.17 lakh metric tonnes in FY 2023-24 and 11.65 lakh metric tonnes of onions in 2024-25 so far. While onion exports were 0.72 lakh tonnes in September 2024, it increased to 1.85 lakh tonnes in January 2025.
Prices fall, mandis arrive rapidly
After the rabi season crop, onion prices have been soft in the mandis and retail markets. Although the mandi prices are still higher than the previous year, the all-India model prices have seen a fall of 39% and the retail level by 10%. A huge inward onion has been recorded in the major mandis of Maharashtra such as Lasalgaon and Pimplegaon. On 21 March 2025, the model price in Lasalgaon was ₹ 1330 and ₹ 1325 per quintal in Pimplegaon.
Record production of onion this year
According to the Ministry of Agriculture, this time the production of Rabi onion is estimated to be 227 lakh metric tonnes, which is 18% more than the previous year’s 192 LMT. Rabi season onion crop is 70-75% of the total onion supply of the country, so that the market will remain stable till the kharif crop comes.
Government’s dual challenge
On one hand, the government wants to give farmers the right price for their produce, on the other hand, is trying to control prices for consumers. Since August last year, the country faced low production and high prices in the global market. Now a good rabi crop is expected to balance the market and relief.
