In a bid to protect the interests of farmers, the government has decided to lift the nearly six-month-old ban on export of onions, as prices are likely to fall sharply due to bumper rabi crop. The lifting of ban would be effective once the Directorate General of Foreign Trade (DGFT) issues a notification in this regard.
The Group of Ministers (GoM) has deliberated on whether to reduce or scrap the Minimum Export Price (MEP) on onion to facilitate outbound shipments. The MEP is the rate below which no exports are allowed.
Earlier, in September 2019, the government had banned onion exports and also imposed a MEP of $850 per tonne. The move came after prices had started skyrocketing due to supply-demand mismatch.
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