The Government of India has decided to lift the export ban on onions, a restriction that has been in place for nearly six months. The announcement was made by the Directorate General of Foreign Trade (DGFT) on Saturday. According to a notification by the DGFT, the Minimum Export Price (MEP) for onions has been set at $550 per ton, effective immediately.
In late March, the Indian government had imposed an indefinite ban on onion exports in anticipation of domestic price hikes ahead of the ongoing Lok Sabha elections. Now, amidst the elections, the government has decided to lift this ban.
This move is expected to bring relief to onion farmers in Maharashtra, which is the highest onion-producing state in India. Prices had plummeted to Rupee 1,200 per 100 kg in some wholesale markets in April, down from Rupee 4,500 in December 2023. The farming community in Maharashtra had been vocal against the ban, supported by various opposition political parties. With the lifting of the ban, it is anticipated that onion prices will naturally increase.
Although the export ban was comprehensive, the Indian government did grant permission in April to export nearly 100,000 tons of onions to six countries including Bangladesh, United Arab Emirates, Bhutan, Bahrain, Mauritius, and Sri Lanka.
India is one of the world’s largest onion exporters. The initial ban was set to expire on March 31 but was subsequently extended indefinitely. A significant portion of the onions imported by Bangladesh comes from India. The absence of Indian onions had caused a hike in prices all around Bangladesh.
