India Removes Onion Export Duty
Analysis based on 7 articles · First reported Mar 22, 2025 · Last updated Mar 23, 2025
The removal of the 20% export duty on Onion by India is expected to boost exports and support farmers by ensuring remunerative prices, potentially leading to increased trade volumes for Onion. While this might initially push up domestic prices, the anticipated higher rabi crop production is expected to stabilize market prices in the coming months, benefiting both producers and consumers.
India's government has decided to remove the 20% export duty on Onion, effective April 1, 2025. This decision, recommended by the Ministry of Consumer Affairs, Food and Public Distribution and notified by the Nepal — Department of Revenue Investigation, aims to protect farmers' interests amid softening domestic prices due to an abundant rabi harvest. The export duty had been in place since September 13, 2024, as part of broader measures to ensure domestic availability and curb inflation, which also included a temporary export ban from December 2023 to May 2024. Despite these restrictions, Onion exports remained high. The India — Department of Agriculture and Farmers Welfare estimates rabi Onion production at 227 lakh metric tonnes this year, an 18% increase from the previous year, which is expected to further ease market prices. This policy shift is intended to enhance the competitiveness of Indian Onion in the global market and provide relief to domestic producers.
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