Govt removes restrictions on onion exports, sets minimum export price of $550 per MT

The Union Ministry of Commerce and Industry has amended the export policy of onions from 'prohibited' to 'free’ and has set a minimum export price of $550 per metric tonne (MT) with immediate effect until further orders. 

In a notification dated May 4, the Directorate General of Foreign Trade (DGFT) said, “In exercise of powers conferred by Section 3 read with Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No. 22 of 1992), as amended, read with Para 1.02 and 2.01 of the Foreign Trade Policy, 2023, the Central Government hereby amends the Export Policy of Onions in Chapter 07 of Schedule 2 of the ITC (HS) Export Policy.”

The government imposed an export duty of 40 percent on onions with effect from May 3.

Currently, the export of onion is banned. However, the government allows shipments to India's friendly nations. It has permitted a specified quantity of onion exports to UAE and Bangladesh.

In August last year, India imposed a 40 percent export duty on onions up to December 31, 2023.

After nearly five months of the export ban, on April 26, the government allowed export of 99,150 million tonnes of onions mainly sourced from Maharashtra to six neighbouring countries.

On December 8, 2023, the government banned the export of onions to ensure adequate availability for local consumption against the backdrop of estimated lower Kharif and Rabi crops in 2023-24 compared to the previous year and increased demand in the international market.

The government, on May 3, also extended duty exemption on imports of yellow peas covered by the bill of entry issued on or before October 31, 2024. The changes would be effective from May 4, 2024, the Union finance ministry said in a notification. The government also fully exempted imports of desi chana till March 31, 2025.