Government lifts ban on onion exports, imposes 40% export duty

The government on Saturday lifted the ban on onion exports subject to a minimum export price of USD 550 per tonne, a decision that can help boost income of a large section of farmers and comes ahead of the Lok Sabha polls in key producing regions including Maharashtra.

The government has imposed a minimum export price (MEP) of USD 550 per tonne (around Rs 46 per kg) as well as 40 per cent export duty. Taking duty into account, the shipments will not be allowed below USD 770 per tonne (around Rs 64 per kg).

On December 8 last year, the Centre had banned onion exports in early December to control retail prices amid concerns over likely fall in production. During the last 4-5 years, the country annually exported



between 17 lakh and 25 lakh tonnes of onions.

Consumer Affairs Secretary Nidhi Khare said the lifting of the ban would not lead to any price rise in retail markets.

“Prices will remain stable. If at all there is any increase, it should be very marginal,” she said, while asserting that the government is committed to protect the interests of both consumers and farmers.

Earlier in the day, the directorate general of foreign trade (DGFT) said in a notification that “the export policy of onions is amended from prohibited to free subject to MEP of USD 550 per metric tonne with immediate effect and until further orders.” Last night, the finance ministry imposed a 40 per cent export duty.