Modi Government Lifts Ban on Onion Export: 1000 Kg Onions to be Sold at Minimum ₹45,800, 40% Export Duty Imposed

The government has lifted the ban on onion exports, setting the Minimum Export Price (MEP) at $550, approximately ₹45,800 per metric ton. This means that onions can be exported at a price not less than ₹45,800 per metric ton. This order has come into effect today and will remain valid until further notice. 

Additionally, the government has also decided to impose a 40% export duty on onion exports. Last year, when onion prices surged to ₹70-80 per kilogram in December, the government had imposed a ban on onion exports.

Ban on Onion Export Lifted Ahead of Third Phase of Voting

In December of the previous year, the ban on onion exports was lifted, only to be reinstated by the government until March 31, 2024, but with allowances made for shipments based on countries’ requests. Subsequently, just last month, the government extended the ban on onion exports until further notice.

The escalation in the export ban has prompted traders and farmers, particularly those in Maharashtra, to appeal for its removal. They argue that lifting the export ban would help farmers fetch better prices for their produce. Now, the government has lifted the ban at a time when the country is gearing up for the third phase of voting in the Lok Sabha elections, scheduled for May 7.

Rise in Onion Prices Post Navratri

Following Navratri in October, onion prices surged rapidly across the country, escalating even further within a span of just one to two weeks. 

To alleviate the burden on consumers, the government initiated the sale of onions through government-run centers such as the National Cooperative Consumers’ Federation (NCCF) and NAFED at a subsidized rate of ₹25 per kilogram starting from October 27th.

Onions: Integral to India’s Political Economy

Onions have always been a significant component of India’s political economy, especially during election seasons. Former Prime Minister Indira Gandhi famously termed the 1980 general election as the “onion election.”