The Government of India announced on Saturday that it is relaxing the ban on onion exports. The authorities lifted the ban but placed a minimum export price (MEP) of $550 per tonne of the produce, the Directorate General of Foreign Trade (DGFT) informed via an official notification.
The development comes amid the ongoing elections in the country. Notably, just yesterday, the Ministry of Finance announced a 40 per cent export duty on onions.
The official notification stated, “The export policy of onions is amended from prohibited to free subject to MEP of USD 550 per metric ton with immediate effect and until further orders.”
In the Friday announcement, the government said that onion exports will be charged a duty of 40 per cent, effective from May 4, 2024. While India had banned the exports of the produce, it was still allowing shipments for its friendly counterparts. The ban on the exports was announced in August last year, initially till December 31, 2023.
The restrictions were imposed to keep a check on the domestic supply levels of the produce, and control the prices of the crop in the market, amidst anticipation of reduced production and surging global demand.
Also Read : Government Imposes 40 Per Cent Duty On Onion Exports
Later in December 2023, the export ban was extended till March 2024. At the time, the crop was being sold in Delhi-NCR for nearly Rs 70-80 per kg.
Earlier in October, the minimum export price (MEP) of $800 per tonne was imposed on onion exports, to last till December end 2023. The government also started selling buffer onion stock at subsidised price of Rs 25 per kg in retail markets to help the customers and control the prices. Production woes have plagued the crop in the 2023-24 Kharif-Rabi season.