Decision To Lift Onion Exports Ban Taken After Receiving Approval From ECI: Report

This move is expected to help raise the income for farmers, specifically in major onion-producing regions such as Maharashtra, as the Lok Sabha polls take place

India has been maintaining strict control on onion exports amidst expectations of a reduced production in the current season.

Source : Getty

The Indian government reportedly sought permission from the Election Commission before removing the restrictions placed on onion exports, media reports said. 

Citing official sources, PTI reported that the Finance Ministry’s Department of Revenue requested for permission from the Election Commission to do away with the curbs placed on the export of onions, owing to the Model Code of Conduct currently implemented as part of the Lok Sabha Elections. 

Following this, the government on Saturday allowed the export of the produce, subject to a 40 per cent export duty and a floor price of $550 per tonne. This move is expected to help raise the income for farmers, specifically in major onion-producing regions such as Maharashtra, as the Lok Sabha polls take place.

The final call on the export ban was taken based on the recommendations of the Department of Consumer Affairs. The department is responsible for overseeing the price and availability of onions in the domestic market. 

With the new duty and the minimum export price (MEP), the lower limit for shipments stands near $770 per tonne, the report noted. The farmers in major onion-producing regions such as Nashik, Ahmednagar, Solapur have been seeking a lifting of the export ban to help them get better prices for their produce.

Notably, the Congress party last month said that the Narendra Modi-led BJP government was 'callously neglecting' the onion farmers in Maharashtra as they remained affected by the ban. The party in its manifesto promised to provide a predictable trade policy to shield farmers from any last minute policy changes and their effects.

India has been maintaining strict control on onion exports amidst expectations of a reduced production in the current season. The country’s onion exports in the last four to five years ranged between 1.7 million - 2.5 million tonne.

As of March, the official data released by the Union Agriculture Ministry placed the expected onion production in 2023-24 at 25.473 million tonne, against 30.208 million tonne produced a year earlier.