India has removed the minimum export price (MEP) on onions in a move to increase farmers’ income. The decision comes just before assembly elections in Maharashtra, the country’s largest onion-producing state.
The Directorate General of Foreign Trade (DGFT) issued a notification on the removal of the MEP, effective immediately.
Previously, India had imposed a $550 per tonne MEP after lifting a ban on onion exports in May. This restriction prevented farmers from selling onions internationally at lower prices.
Despite the current high retail prices of onions, the government decided to lift the MEP. According to data from the Department of Consumer Affairs, the national average price of onions was Rs 50.83 per kg, with prices ranging from Rs 28 to Rs 83 per kg across the country.
