India Reinstates Onion Exports with Minimum Export Price of $550 Per Tonne
GG News Bureau
New Delhi, 4th May. The government has lifted the ban on onion exports, with a minimum export price of USD 550 per tonne. This decision is expected to increase the income of many farmers, especially in key onion-producing regions like Maharashtra, just before the Lok Sabha elections.
There is also a 40% export duty, making the minimum price for exports USD 770 per tonne. The ban on onion exports was put in place on December 8 last year to control retail prices due to concerns about a potential decrease in production. India usually exports between 1.7 to 2.5 million tonnes of onions annually.
The Consumer Affairs Secretary, Nidhi Khare, mentioned that lifting the ban will not lead to a significant increase in retail prices. She assured that prices will remain stable, and any rise should be minimal. The government aims to protect the interests of both consumers and farmers.
The decision to lift the ban comes at a crucial time before the Lok Sabha elections in key onion-producing areas like Nashik, Ahmednagar, and Solapur in Maharashtra. Farmers in these regions have been requesting the ban to be lifted to receive better prices for their produce.
The government is closely monitoring the prices of essential food items and will continue to keep an eye on availability and prices. An inter-ministerial committee reviews prices, production, availability, and exports of essential food items, including onions, to ensure a stable market.
In March, the Union Agriculture Ministry released data showing a decrease in onion production compared to the previous year. Despite this, the government has allowed the export of 99,150 tonnes of onions to six neighboring countries. The Congress has criticized the government for neglecting Maharashtra’s onion farmers affected by the export ban.
