India's Onion Export Policy in 2026: What Changed and How to Plan
From the 40% duty to MEP swings, India's onion export rules shift fast. Here's how to keep contracts safe.
A policy that moves with the mandi
India is the world's second-largest onion exporter, but DGFT notifications can flip the export window overnight. Between 2023 and 2026 we saw an outright ban, a 40% export duty, a $550/MT Minimum Export Price, and finally a duty-free window for select varieties.
The 2026 regime
As of April 2026, fresh red onions are exportable without MEP but subject to a 20% duty, while Bangalore Rose and Krishnapuram varieties enjoy duty-free treatment under specific HS codes. Bangladesh and Sri Lanka contracts move on a G2G basis through NCEL.
Risk management for buyers
Insist on force-majeure clauses tied to DGFT notifications, split shipments across Mundra, Nhava Sheva and JNPT, and pre-book reefer space during Aug–Oct when domestic prices typically spike.
Markets to watch
Malaysia, UAE, Sri Lanka and Nepal absorb ~70% of Indian onion exports. New demand pockets are opening in Saudi Arabia and Vietnam, where Indian onions are displacing Chinese supply on freight and shelf-life advantages.
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