India: Government lifts ban on onion exports; imposes minimum export price of USD 550/tonne

Published 2024년 5월 4일

Tridge summary

The Indian government has lifted the ban on onion exports, setting a minimum export price of $550 per tonne and a 40% export duty, effective immediately. This decision, popular among farmers in Maharashtra and other key producing regions, is expected to stabilize prices and boost income for farmers. The government maintains that this will not lead to a retail price increase and insists on its commitment to both consumers and farmers. The decision is made amidst concerns over the decrease in onion production in India and follows the permission to export 99,150 tonnes of onions to six neighboring countries.

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Original content

New Delhi, May 4 (PTI) The government on Saturday lifted the ban on onion exports subject to a minimum export price of USD 550 per tonne, a decision that can help boost income of a large section of farmers and comes ahead of the Lok Sabha polls in key producing regions including Maharashtra. The government has imposed a minimum export price (MEP) of USD 550 per tonne (around Rs 46 per kg) as well as 40 per cent export duty. Taking duty into account, the shipments will not be allowed below USD 770 per tonne (around Rs 64 per kg). Consumer Affairs Secretary Nidhi Khare said 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,” she said, while asserting that the government is committed to protect the interests of both consumers and farmers. Earlier in the day, the directorate general of foreign trade (DGFT) said in a notification that “the export policy of onions is amended ...

Source: Theprint