The central government has lifted the ban on onion exports in a move that aims to boost farmers’ incomes ahead of the Lok Sabha elections in key producing regions in Maharashtra. The decision, which comes after permission from the Election Commission of India due to the Model Code of Conduct, has been recommended by the Department of Consumer Affairs, which monitors the availability and price situation of onions in the country.
To ensure stable domestic prices, the government has imposed a minimum export price (MEP) of $550 per tonne (around ₹46 per kg) and a 40% export duty. This means that onion shipments below $770 per tonne (around Rs 64 per kg) will not be allowed.
The decision is based on the latest estimates of onion production in the rabi season, which at 191 lakh tonnes, is considered comfortable. The government has also taken into account the availability and prices of onions in global markets.
The Department of Consumer Affairs Secretary, Nidhi Khare, has asserted that the lifting of the ban will not lead to any price rise in retail markets. She stated that prices will remain stable or see a marginal increase, and that the government is committed to protecting the interests of both consumers and farmers.
The Directorate General of Foreign Trade (DGFT) has issued a notification stating that the export policy of onions has been amended from prohibited to free, subject to the MEP of USD 550 per metric tonne. The Finance Ministry has also imposed a 40% export duty.
The decision has been welcomed by farmers in key onion-producing belts like Nashik, Ahmednagar, and Solapur in Maharashtra, who have been demanding the lifting of the ban to get better prices for their produce.
The government has clarified that it is continuously monitoring the prices of onions and other essential food items. An inter-ministerial committee (IMC) regularly reviews the production, availability, and exports of essential food items, including onions. The IMC has been taking various measures to boost domestic supply and keep prices under check.
In March, the Union Agriculture Ministry released data showing a decline in onion production for 2023-24 (First Advance Estimates) to around 254.73 lakh tonnes compared to 302.08 lakh tonnes the previous year. This decrease is primarily due to lower output in Maharashtra, Karnataka, Andhra Pradesh, and Rajasthan.
Last month, the government allowed export of 99,150 tonnes of onion to six neighboring countries – Bangladesh, UAE, Bhutan, Bahrain, Mauritius, and Sri Lanka. The Congress party has criticized the government for its handling of the onion export ban, accusing it of neglecting farmers’ interests.
