India's federal government, with approval from the Election Commission due to the ongoing Model Code of Conduct for the Lok Sabha elections, has lifted the ban on onion exports. The Department of Revenue, under the finance ministry, was granted permission to revoke the export ban, imposing a 40% export duty and setting a minimum export price (MEP) of $550 per ton. This decision aims to support farmers' income, particularly in key producing regions like Maharashtra, ahead of the Lok Sabha polls.
The export conditions ensure that shipments are not permitted below $770 per tonne, factoring in the export duty. The lifting of the ban follows recommendations from the Department of Consumer Affairs, tasked with monitoring onion availability and pricing.
Previously, the government had imposed a ban on onion exports in early December to control retail prices amidst production concerns. India has historically exported between 1.7 million and 2.5 million tons of onions annually over the last 4–5 years. Following the ban lift, onion prices at Maharashtra's Lasalgaon market, India's largest wholesale onion market, saw an increase. The government's decision has been met with mixed reactions from the farming community, highlighting the impact of export duty on profits.
[ Rs 100 = €1.10 ]
Source: devdiscourse.com