India Lifts Onion Export Duty to Balance Domestic Supply and Prices

The Indian government has revoked a 20% export duty on onions, effective April 1, 2025, to stabilize domestic onion prices and increase farmer income. The decision follows a series of measures since December 2023 to manage supply, including export bans and pricing strategies.

The Indian government announced the removal of a 20% export duty on onions, initially imposed in September 2024, to take effect on April 1, 2025. This move aims to balance domestic supply and stabilize prices, according to a notification from the Department of Revenue.

Since December 8, 2023, the government has employed various strategies, including export restrictions and setting a minimum export price, to ensure the domestic availability of onions. Despite these measures, the total onion export volume reached 17.17 lakh tonnes for 2023-24, and 11.65 lakh tonnes up to March 18, 2025.

The Ministry of Consumer Affairs highlighted that the decision reflects the government's commitment to securing fair prices for farmers while maintaining affordability for consumers. As rabi onion production is expected to rise, marking an 18% increase from last year, market prices are predicted to ease further, contributing to overall price stability.

(With inputs from agencies.)