Government Lifts Ban On Onion Exports
The central government lifted the ban on onion exports starting December 7, 2023. However, exporters must adhere to a minimum export price (MEP) of $550 per metric ton. This decision aims to stabilize onion prices domestically and ensure better returns for farmers. The move is a relief for farmers, exporters, and consumers alike, as it will stabilize onion prices and benefit farmers.
Reasons for Lifting the Ban:
The government likely made this decision in consideration of the upcoming Lok Sabha elections, as onions are a crucial food item with price fluctuations that can impact voters.
Losses to Farmers and Exporters: The export ban had caused significant losses to both farmers and exporters.
International Pressure: India faced pressure from several countries to resume onion exports.
Export Duty: To control onion prices, the government imposed a 40% export duty on onion exports last year.
Export Permission for Six Countries: During the export ban, the government permitted six neighboring countries – Bangladesh, United Arab Emirates, Bhutan, Bahrain, Mauritius, and Sri Lanka – to export onions. Approximately 100,000 tons of onions were exported to these countries.
Other Decisions: The government also exempted import duty on domestic chickpeas until December 31, 2025, and extended the deadline for import duty exemption on yellow peas until October 31, 2024. These changes took effect on May 4, 2024.