Pune: Centre’s Delayed Onion Export Duty Removal Has Little Impact on Market Prices

Pune, 24th March 2025: The Indian government’s decision to remove the 20% export duty on onions, effective from 1st April has come too late to significantly impact market prices. Despite the announcement, onion prices in Pune and Lonand market committees remain unchanged, ranging from Rs 800 to Rs 1700 per quintal.

The government’s delay in lifting the export restrictions has been criticized by farmers and traders. The export ban was initially relaxed in May 2024, replacing it with a 40% export duty, which was later reduced to 20% in September 2024. However, the market expected the duty to be removed entirely when Kharif onions flooded the market after Diwali, causing prices to drop.

The recent decision to remove the export duty comes as onion production has increased in major producing states like Maharashtra, Madhya Pradesh, Karnataka, and Rajasthan. This abundance in supply, coupled with competition from cheaper Pakistani onions in the international market, has raised concerns about the demand for Indian onions abroad.

Bipin Shah, an onion exporter, noted that the implementation of the export duty removal will only take effect on 1st April. He also mentioned that the current influx of onions from Nashik, Ahilyanagar and Pune regions is high, with expectations of increased supply from Rajasthan and Madhya Pradesh in the coming month.

Farmers like Bhagwan Pingale have expressed frustration with the government’s import-export policies. Pingle suggested that if onion prices fall below Rs 25 per kg, the government should provide a subsidy of Rs 5 per kg, similar to the dairy industry, as current prices barely cover production costs.

The Lonand Agricultural Produce Market Committee has reported the following onion prices per quintal:
– February 27: Rs 1200 to Rs 2600
– March 6: Rs 800 to Rs 2400
– March 13: Rs 800 to Rs 1670
– March 20: Rs 800 to Rs 1700
– March 24: Rs 800 to Rs 1750

As the rabi onion harvest, which accounts for 70-75% of India’s total onion production, is estimated to be 18% higher than last year at 22.7 million tonnes, market prices are expected to ease further in the coming months.