The government has lifted the ban on onion exports, a move that is expected to benefit traders in Maharashtra. A minimum export price of USD 550 per tonne has been set amid ongoing Lok Sabha elections in India. This decision arrives just before upcoming voting phases in Maharashtra’s key onion-producing regions.
Simultaneously, the government has reinstated a 40% export duty on onions, which had been implemented last year and was scheduled to last until December 31, 2023. The Directorate General of Foreign Trade (DGFT) announced that the export policy for onions has been amended from prohibited to free, subject to the set MEP of USD 550 per metric ton.
Last month, the Ministry of Consumer Affairs, Food and Public Distribution approved the export of 99,150 tonnes of onions to neighboring countries including Bangladesh, UAE, Bhutan, Bahrain, Mauritius, and Sri Lanka.
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Onion traders and farmers, particularly in Maharashtra, have been advocating for the removal of the export ban, believing it would help farmers receive better prices. However, the government had previously resisted these demands due to concerns that allowing onion exports could lead to higher domestic prices.
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