New Delhi, March 23, 2025: The Indian government has decided to scrap the 20% export duty on onions from April 1, 2025. The duty was introduced in December 2024 to manage domestic inflation and stabilize onion prices. As production is picking up and prices have stabilized, the government has made a decision to withdraw the curb, which will help farmers and exporters.

The decision is likely to increase India’s onion exports, especially to Bangladesh, Sri Lanka, and the Middle East, which have a great demand for Indian onions. Onion farmers in Maharashtra, Karnataka, and Madhya Pradesh, which are the country’s leading onion-producing states, have appreciated the decision, looking forward to improved profits.

Though exporters welcome the move, however, some observers caution that high exports might inflate domestic prices ever so slightly. The government assured that it would keep a very close watch over the market in order to guard against extreme variations in price.

The exemption of the onion export duty has been viewed as a tactical strategy aimed at deepening India’s agri-commerce and augmenting the revenues of farmers and exporter traders.