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Indian Government Lifts Onion Export Restrictions, Sets Minimum Price at $550 per MT

by Devendra Kumar
May 6, 2024
in News, Onion
0
Indian Government Lifts Onion Export Restrictions, Sets Minimum Price at $550 per MT


The Indian government, in response to lower Kharif and Rabi crops and rising international demand, initially banned onion exports on December 8, 2023, to ensure ample supply for domestic consumption. However, in a recent move, the Union Ministry of Commerce and Industry has revised the export policy on onions, shifting from ‘prohibited’ to ‘free,’ while establishing a minimum export price of $550 per metric tonne (MT) with immediate effect.

The Directorate General of Foreign Trade (DGFT) issued a notification on May 4, invoking relevant trade regulations to amend the Export Policy of Onions. This decision grants flexibility in onion exports while imposing a 40 percent export duty effective May 3.

Although onion exports are currently restricted, exceptions are made for shipments to friendly nations like the UAE and Bangladesh. Last year, India enforced a 40 percent export duty on onions until December 31, 2023, to control the market.

Following a five-month ban, the government permitted the export of 99,150 million tonnes of onions, predominantly sourced from Maharashtra, to six neighboring countries on April 26.

Moreover, on May 3, the government extended duty exemption for yellow peas imports covered by entries up to October 31, 2024. These adjustments, announced by the Union finance ministry, are set to take effect from May 4, 2024.

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