Government Lifts Minimum Price Threshold on Onion Exports

The Indian government has abolished the minimum export price (MEP) for onions, previously set at USD 550 per tonne. This decision, announced by the Directorate General of Foreign Trade (DGFT), aims to benefit Indian farmers by enabling them to export onions at more competitive prices ahead of the Maharashtra assembly elections.

In a significant policy shift, the Indian government on Friday repealed the minimum price threshold for onion exports. This move is designed to allow farmers to benefit from the current global oversupply of onions.

Previously, the government had mandated a minimum export price of USD 550 per tonne, preventing farmers from selling their produce abroad below this rate. The Directorate General of Foreign Trade (DGFT) issued a notification on Friday to abolish this pricing floor effective immediately.

The decision, which comes ahead of pivotal assembly elections in Maharashtra—a key onion-producing state—aims to boost export opportunities for farmers. The DGFT notification stated, "The Minimum Export Price (MEP) condition on Export of onions is removed with immediate effect and until further orders."