diff --git a/xbps-src/xbps-src.sh.in b/xbps-src/xbps-src.sh.in
index 633fdc8ccd0..cd8543883e5 100644
--- a/xbps-src/xbps-src.sh.in
+++ b/xbps-src/xbps-src.sh.in
@@ -288,6 +288,9 @@ list|listfiles)
 	list_pkg_files $2
 	;;
 make-repoidx)
+	if [ -n "${_PACKAGEDIR}" ]; then
+		export XBPS_PACKAGESDIR=${_PACKAGEDIR}
+	fi
 	echo "=> Updating package index for local repository at"
 	echo "   $XBPS_PACKAGESDIR..."
 	${XBPS_REPO_CMD} genindex ${XBPS_PACKAGESDIR} 2>/dev/null