Government Scraps Minimum Price Threshold for Onion Exports to Boost Farmer Income

The Indian government has removed the minimum export price (MEP) for onion exports previously set at USD 550 per tonne. This step is aimed at increasing farmers' income and comes ahead of assembly elections in Maharashtra. Despite high retail prices, the decision is seen as a move to promote exports and assist farmers.

In a strategic move to boost farmer income, the Indian government has scrapped the minimum export price (MEP) for onion exports, which was previously set at USD 550 per tonne. This decision, announced in a Directorate General of Foreign Trade (DGFT) notification on Friday, aims to promote exports and alleviate economic stress for producers.

The timing of the policy change is noteworthy as it precedes the upcoming assembly elections in Maharashtra, a significant onion-producing state. The new regulation takes effect immediately, despite the high retail prices of onions in the market.

Consumer Affairs data shows that the average price of onions in India stands at Rs 50.83 per kg. However, government efforts such as the sale of onions at subsidized rates through NCCF and Nafed are underway to mitigate the price rise. The Consumer Affairs Department has indicated a positive outlook for onion supply in the coming months, with increased kharif (summer) sown area and substantial storage reserves.

(With inputs from agencies.)