Onion Exports Drop by 20% Due to Export Duties Despite Increase in Quantity

India’s onion exports have declined by ₹696 crore compared to last year, mainly due to the imposition of export duties. Between April and November of this financial year, the total value of onion exports stood at ₹2,663 crore, down from ₹3,359 crore during the same period last year—a sharp decline of 20%.

Interestingly, the quantity of onions exported actually increased from 16.26 lakh metric tonnes last year to 17.17 lakh metric tonnes this year. However, earnings have dropped significantly, indicating that onions are being sold at lower prices in the global market.

Farmers and Traders Demand Policy Stability

Farmers and traders blame inconsistent export policies for this decline. They argue that sudden restrictions and export duties have made Indian onions less competitive, allowing countries like China, Egypt, and Pakistan to capture the market by offering onions at better prices.

Over the past few years, onion exports have fluctuated due to changing policies. While India exported 25.25 lakh tonnes of onions in 2022-23, the figure has fallen to 17.17 lakh tonnes in 2023-24. Similarly, foreign exchange earnings have dropped from ₹4,522 crore last year to ₹3,922 crore this year.

Major Export Destinations and Farmers’ Demands

Indian onions are primarily exported to Bangladesh, Malaysia, Sri Lanka, Nepal, UAE, Indonesia, Qatar, Hong Kong, Kuwait, and Vietnam. However, traders warn that India may lose its position in these markets if export restrictions continue.

Farmers are demanding a stable, long-term export policy to ensure better prices and steady income. They argue that removing export duties and lifting restrictions will make Indian onions more competitive globally and help boost farmers' earnings.