Lara Zijl 
The Indian government announced the removal of the 20% export duty on onions, effective April 1, 2025. This decision reverses a measure implemented on September 13, 2024, aimed at ensuring domestic availability. The government’s statement emphasizes a commitment to balancing farmer income with consumer affordability, a crucial aspect given recent price fluctuations.
A Balancing Act: Farmers and Consumers
The export duty, along with other measures like minimum export prices (MEP) and even temporary export bans (December 8, 2023 – May 3, 2024), were implemented to manage onion supply and prices. Despite these restrictions, onion exports remained substantial: 17.17 lakh tonnes in 2023-24 and 11.65 lakh tonnes in 2024-25 (until March 18). Interestingly, monthly export quantities showed a significant increase, rising from 0.72 lakh tonnes in September 2024 to 1.85 lakh tonnes in January 2025.
The government’s rationale for lifting the duty points to softening prices in both wholesale (mandi) and retail markets. While mandi prices remain above those of previous years, a 39% decline in all-India weighted average modal prices is noted. Retail prices have also seen a 10% decrease in the past month. This price stabilization is attributed to the expected arrival of substantial rabi onion crops.
Rabi Crop and Future Outlook
Increased onion arrivals in key markets like Lasalgoan and Pimpalgaon support this positive outlook. The Department of Agriculture and Farmers Welfare estimates rabi production at 227 lakh metric tonnes, an 18% increase over last year’s 192 lakh tonnes. Rabi onions, accounting for 70-75% of total production, are vital for maintaining price stability until the kharif crop arrives in October/November. The government anticipates that this higher production will further ease market prices in the coming months.
Summary:
The removal of the export duty signifies a shift in strategy, reflecting confidence in the upcoming rabi harvest and a commitment to supporting both farmers and consumers. The government’s approach demonstrates a dynamic response to market conditions, aiming to balance domestic supply needs with the opportunities presented by international trade.Share
