Big news for middle class people of India. The Government of India gave a big relief to them about onion. The central government has officially lifted the 20 percent export duty on onions, a change that will take effect on April 1, 2025. This announcement comes from the Revenue Department following a recommendation from the Department of Consumer Affairs. Onion exporters are likely to benefit significantly from this move.

 

Why was the duty put in place?

 

Recently, the government implemented strict measures to ensure a steady supply of onions in the domestic market and to manage prices. These measures included an export duty, a minimum export price (MEP), and a temporary export ban that lasted about five months, from December 8, 2023, to May 3, 2024. The 20 percent export duty was introduced on September 13, 2024, but has now been rescinded.

 

Exports rise despite limitations

 

Interestingly, even with these restrictions, India managed to export a substantial quantity of onions. In the financial year 2023-24, exports totaled 17.17 lakh metric tonnes, while 11.65 lakh metric tonnes were exported in the financial year 2024-25 (up to March 18, 2025).

 

Notably, monthly exports surged to 1.85 lakh metric tonnes by January 2025, compared to just 0.72 lakh metric tonnes in September 2024, highlighting strong global demand.

 

Support for farmers and consumers

 

The removal of the export duty demonstrates the government’s commitment to ensuring fair prices for farmers while stabilizing onion prices for consumers. Recent market data shows that the weighted average price of onions has dropped by 39 percent compared to last year. Additionally, retail onion prices have decreased by 10 percent in the past month, offering some relief to consumers.

 

Record Rabi crop production

 

The Department of Agriculture and Farmers Welfare reports that this year’s Rabi onion production is projected to reach 227 lakh metric tonnes, an 18 percent increase from last year’s 192 lakh metric tonnes. Rabi onions, which make up 70-75 percent of India’s total onion output, are crucial for maintaining price stability.