New Delhi, May 4 (KNN) The Indian government on Saturday lifted the ban on onion exports, but imposed a minimum export price (MEP) of USD 550 per tonne.

This move comes amid the ongoing Lok Sabha elections in the country. Last night, the government had imposed a 40 per cent duty on onion exports. 

In August 2022, India had implemented a 40 per cent export duty on onions until December 31, 2023.

The Directorate General of Foreign Trade (DGFT) stated in a notification, "The export policy of onions is amended from prohibited to free subject to MEP of USD 550 per metric ton with immediate effect and until further orders."

The onion export ban was initially imposed on December 8, 2022, effective from March 31, 2023. This prohibition was later extended until further notice in March.

According to data released by the Union Agriculture Ministry in March, onion production in 2023-24 is expected to be around 254.73 lakh tonnes, a decrease from the previous year's 302.08 lakh tonnes. 

This decline is attributed to lower output in states like Maharashtra, Karnataka, Andhra Pradesh, and Rajasthan.

Last month, the Ministry of Consumer Affairs, Food and Public Distribution allowed the export of 99,150 tonnes of onions to six neighbouring countries, including Bangladesh, UAE, Bhutan, Bahrain, Mauritius, and Sri Lanka.

(KNN Bureau)