31 March 2025

Economic and Policy Implications of the Decision The economic rationale behind removing the export duty primarily revolves around the interests of onion farmers and exporters. The duty had resulted in suppressed farm gate prices, with onion producers in Maharashtra, Karnataka, and Madhya Pradesh, India’s key onion-growing states, facing financial distress due to reduced demand from […]

Introduction The Indian government’s decision to remove the 20% export duty on onions, effective April 1, 2025, marks a significant shift in its approach to agricultural trade regulation. Initially imposed in October, 2023 to curb domestic inflation and stabilize onion prices, the export duty was a measure aimed at restricting outbound trade to ensure local