The Maharashtra government has welcomed the Centres recent decision to fully withdraw the 20% export duty on onions, effective April 1, 2025. Chief Minister Devendra Fadnavis expressed gratitude to Prime Minister Narendra Modi and Union Minister of Cooperation Amit Shah, considering it a major relief for onion farmers, particularly in regions like Lasalgaon and Pimpalgaon. This decision has sparked mixed reactions, with some parties praising the move while others caution against the retrospective impact of previous restrictions.
On March 22, 2025, Fadnavis stated, This is a vital step for our farmers and will significantly enhance their income. I thank the Union government for listening to our appeals and taking decisive action. Deputy Chief Minister Ajit Pawar echoed these sentiments, highlighting that lakhs of farmers across Maharashtra stand to benefit from this decision, which reaffirms the state governments commitment to supporting agricultural interests.
Pawar further noted that he personally requested Amit Shah to consider the distress faced by the state farmers, which facilitated a timely resolution to the concerns. His remarks were met with appreciation from Nationalist Congress Party (NCP) legislator Chhagan Bhujbal, who represents the onion-rich Yeola constituency. Bhujbal had previously urged the state Assembly to lift the duty to mitigate the financial burden on farmers suffering from soaring production costs and dwindling selling prices.
Bhujbal remarked, It was imperative for us to act swiftly to protect the farmers in our region who have been impacted by the duty. We are grateful that the central government has stepped in to relieve the pressure.
The central government imposed the 20% export duty on onions back on September 13, 2024, as part of a range of export restrictions designed to ensure adequate domestic supply. This included a minimum export price (MEP) and a temporary ban on exports from December 8, 2023, to May 3, 2024. The measure was met with increasing discontent among farmers, leading to concerted calls for a change.
Despite these challenges, India managed to export 17.17 lakh metric tons (LMT) of onions between FY 2023-24 and 11.65 LMT in FY 2024-25 until March 18, 2025. Monthly export figures rose from a mere 0.72 LMT in September 2024 to 1.85 LMT by January 2025, reflecting an upward trajectory amidst the restrictions.
While the governments recent announcement has been largely welcomed, the Kisan Sabha, representing farmers' interests, expressed concerns regarding the timing of the duty removal. They labeled the move as unfortunate, suggesting that it was too late to reverse the losses incurred by producers in prior months.
A member of Kisan Sabha stated, We welcome the move; if this will bring comfort to our onion farmers, however, it can recover the losses the farmers have faced. The Sabha urged the government to formulate a long-term export policy for onion producers instead of frequent changes in duty and other restrictions, which have left farmers in a precarious position.
They emphasized the need for consistent policy measures that foster trust among farmers and facilitate better planning for their production and sales initiatives. The government must avoid irregular export bans and not increase export duties. Stability in our agricultural policies is essential for the survival of our farmers, one member stated.
In response to the recent notification from the Department of Revenue, the government reiterated its commitment to ensuring fair prices for farmers while also keeping onions affordable for consumers. Agriculture Minister Shivraj Singh Chouhan and Commerce Minister Piyush Goyal also played pivotal roles in the discussions leading to this decision.
As the situation evolves, the Maharashtra government remains focused on continuing to advocate for the welfare of its farmers, ensuring that they can thrive in a competitive market with adequate support from the central government. The hope is that this decision will pave the way for a more sustainable future for onion producers.
