India has lifted the ban on onion exports, according to government sources cited by the Press Trust of India (PTI). The Department of Revenue under the finance ministry has been granted permission to resume onion exports with specific conditions, including a 40% export duty and a minimum export price (MEP) of USD 550 per tonne. The government has set the MEP at USD 550 per tonne, which translates to approximately Rs. 46 per kg. Considering the export duty, the effective minimum price for shipments will be around USD 770 per tonne or about Rs. 64 per kg. “The export policy of onions is amended from prohibited to free subject to MEP of USD 550 per metric tonne with immediate effect and until further orders,” stated the directorate general of foreign trade (DGFT) in a notification on May 4. This followed the imposition of a 40% export duty by the finance ministry on May 3. The decision to lift the export ban was based on recommendations from the Department of Consumer Affairs, which monitors the availability and price situation of onions in the country. Consumer Affairs Secretary Nidhi Khare on Saturday assured that the lifting of the ban would not lead to any price rise in retail markets. “Prices will remain stable. If at all there is any increase, it should be very marginal,” Khare explained, underscoring the government’s commitment to balancing the interests of both consumers and farmers. The move to reinstate comes after the ban was initially imposed on December 8 last year to control soaring retail prices amidst fears of a possible decline in production. Over the past few years, India has consistently exported between 17 lakh and 25 lakh tonnes of onions annually. Khare also highlighted the comprehensive discussions and ground assessments that informed this decision, “The ban on onion exports has been removed from today (Saturday) because the supply situation is comfortable and prices are stable in both mandies as well as retail markets.” She cited that the modal price at Lasalgaon mandi in Nashik was Rs. 15 per kg in April. Reflecting on the broader agricultural strategy, Khare mentioned that “Lifting of the ban would also encourage the farmers to put more area under onions. The monsoon forecast is above normal,” indicating a proactive approach to agricultural planning and market readiness. This policy shift is crucial as it comes ahead of significant electoral engagements in major belts, aligning economic incentives with electoral strategies, thus showcasing the government’s responsive governance framework aimed at supporting the agricultural sector while ensuring market stability.
India Lifts Ban on Onion Exports with Conditions Amid Lok Sabha Elections
