In a crucial move following the assembly elections in Maharashtra and Haryana, the central government recently announced the lifting of the minimum price for onion and basmati rice exports. The decision, revealed by the Directorate General of Foreign Trade (DGFT), is expected to have far-reaching implications for both farmers and exporters.
The decision to remove the Minimum Export Price (MEP) condition on onion exports has been met with positivity, especially considering the current onion price crisis in the country. With the MEP restriction removed, onion exports are likely to see a significant boost, benefiting farmers and the economy as a whole.
Union Commerce Minister Piyush Goyal emphasized that the government’s decision to eliminate restrictions on onion exports is a step towards empowering farmers and promoting agricultural trade. The revised onion export policy, effective immediately, includes an exemption from the $550 per tonne limit under the MEP, providing more flexibility to exporters.
Notably, Maharashtra, the largest exporter of onions in India, stands to gain substantially from this decision. With a buffer stock of 4.7 lakh tonnes of onions stored by government agencies like NCCF and NAFED, efforts are underway to stabilize onion prices and ensure sufficient supply for consumers.
Consumer Affairs Secretary Nidhi Khare expressed optimism about the availability and pricing of onions in the coming months, citing an increase in the area sown during the Kharif season. Additionally, the government’s initiative to retail onions at a subsidized rate aims to provide relief to consumers in regions like Delhi and Mumbai, where onion prices have been a concern.
This strategic move by the central government aligns with its focus on supporting farmers and facilitating agricultural exports, particularly in times of economic challenges and political transitions.
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