New Delhi, May 4 (FN Bureau) The government on Saturday lifted the ban on onion exports, nearly six months after the restriction was imposed. The onion exports would however be subject to a minimum export price of US$ 550 per metric tonne. “The export policy of onions is amended from ‘prohibited’ to ‘free” subject to MEP (minimum export price) of USD 550 per metric ton (MT) with immediate effect and until further orders,” Directorate General of Foreign Trade (DGFT) said in a notification. The decision to lift the ban on exports has come days before the third of the seven phase Lok Sabha general election.
The move is set to benefit the onion traders and farmers in Maharashtra, key onion producing state, and other parts of the country. In order to regulate onion prices in the wake of global supply scenario and dry spell induced by El Niño, the government had imposed a 40% duty on onion exports in August 2023. Subsequently a Minimum Export Price (MEP) of US$ 800 per MT was imposed in October last year. In December last year, export of onions was banned except in three conditions including where loading of onions had already started for shipping to other countries.
The notification in December last year further said that export of onions will also be allowed on the basis of permission granted by the Government of India to other countries based on the request of their Government. On April 27, 2024, an official statement said that the government had allowed export of 99,150 MT of onion to six neighbouring countries of Bangladesh, UAE, Bhutan, Bahrain, Mauritius and Sri Lanka.