KATHMANDU: The Indian government has lifted the ban on onion exports but has imposed a minimum export price (MEP) of USD 550 per tonne, amidst the ongoing Lok Sabha elections in the country. This decision comes after the government imposed a 40 percent duty on onion exports the previous night.
Last year in August, India had imposed a 40 percent export duty on onions until December 31, 2023. The Directorate General of Foreign Trade (DGFT) announced the amendment in the export policy of onions, allowing exports subject to a minimum export price of USD 550 per metric ton with immediate effect.
In December 2023, the government banned the export of onions effective from March 31 this year. This prohibition was later extended in March until further orders. The Union Agriculture Ministry released data in March indicating a decrease in onion production for the year 2023-24, compared to the previous year, mainly due to decreased output in Maharashtra, Karnataka, Andhra Pradesh, and Rajasthan.
Despite the export ban, the government had permitted the export of 99,150 tonnes of onions to six neighboring countries last month. This decision faced criticism, particularly from farmers in Maharashtra. The Congress party accused the Narendra Modi government of neglecting Maharashtra's onion farmers and emphasized the need for a predictable import-export policy to prevent such abrupt measures impacting farmers.
