India Lifts Minimum Export Price on Onions Amid Robust Crop Prospects

India has removed the minimum export price on onions due to strong kharif crop predictions and favorable monsoon conditions. Market stability at both mandi and retail levels also influenced the decision. Previously, the government had restrictions and a $550 per tonne minimum price established in May 2024.

India has lifted the minimum export price (MEP) on onions, as announced by the Directorate General of Foreign Trade (DGFT). This decision follows promising prospects for the kharif crop and favorable monsoon conditions, combined with stable market scenarios both at the mandi and retail levels.

Previously, on May 4, 2024, the government had eased the export ban on onions, imposing a minimum export price of USD 550 per tonne and a 40 percent export duty. Initially, in December 2023, India had prohibited onion exports until March 2024, eventually extending the restriction until further notice.

During the period of restriction, onion exports were allowed only with central government permission based on requests from other countries. The rabi onion, harvested between April and June, constitutes 65 percent of India's annual onion production and supplements the demand until the kharif crop is harvested in October-November. (ANI)

(With inputs from agencies.)