New Delhi: The government on Saturday lifted the ban on onion exports after five months, a move that is likely to bring huge relief to people farmer and traders exist Maharashtra Ahead of the rest of the stage Lok Sabha polls in this critical production state. But the move comes with conditions.Traders can transport onions at a minimum export price (MEP) of $550 per ton and pay an additional 40% export tax At this price, it is equivalent to Rs 64,000 per ton or Rs 64 per kilogram.
The decision was taken ahead of the next phase of polls, especially in Maharashtra’s onion belt, including Nashik, Ahmednagar and Shirdi. Onion growers in many districts of Maharashtra have been protesting against the export ban, claiming that the ban has affected their income as onion prices in Lasalgaon are around Rs 15/kg, which barely covers the cost of production.
However, market participants said lifting the ban may not bring much benefit to traders. Jaydutt Holkar, director of Lasalgaon Agricultural Produce Market Committee (APMC), said: “The MEP’s condition of levying 40 per cent export duty will make it difficult to export onions.”
Government officials said the decision was taken after assessing the crop yield, arrival of onions in mandis, current market conditions and avoiding storage losses. Consumer Affairs Minister Nidhi Khare said Rabi production (2024-25) is expected to be about 191 million tonnes, accounting for about 60% of the total annual onion production. She said this was “fairly reasonable” considering that domestic onion consumption is about 1.7 million tons per month.
“As the outlook for kharif is good and the monsoon forecast is ‘above normal’, the supply of onions is adequate till the arrival of kharif production. Since onions are a perishable crop, they must be harvested within 5-6 months For domestic consumption or through export consumption, keeping Rabi stocks beyond the shelf life will only lead to more storage losses,” she said. The secretary added that storage losses increased significantly after three months.
DGFT director general Santosh Kumar Sarangi said onion shipments were “virtually” allowed at a minimum price of $770 per tonne, adding that the MEP and export duties were framed keeping in mind the government Recent price trends and current international prices for kitchen staples available across time.
Sources said onion supply in the international market is expected to increase as Egypt lifts its export ban after increasing production by 300% and Pakistan also lifts its export restrictions.
The decision was taken ahead of the next phase of polls, especially in Maharashtra’s onion belt, including Nashik, Ahmednagar and Shirdi. Onion growers in many districts of Maharashtra have been protesting against the export ban, claiming that the ban has affected their income as onion prices in Lasalgaon are around Rs 15/kg, which barely covers the cost of production.
However, market participants said lifting the ban may not bring much benefit to traders. Jaydutt Holkar, director of Lasalgaon Agricultural Produce Market Committee (APMC), said: “The MEP’s condition of levying 40 per cent export duty will make it difficult to export onions.”
Government officials said the decision was taken after assessing the crop yield, arrival of onions in mandis, current market conditions and avoiding storage losses. Consumer Affairs Minister Nidhi Khare said Rabi production (2024-25) is expected to be about 191 million tonnes, accounting for about 60% of the total annual onion production. She said this was “fairly reasonable” considering that domestic onion consumption is about 1.7 million tons per month.
“As the outlook for kharif is good and the monsoon forecast is ‘above normal’, the supply of onions is adequate till the arrival of kharif production. Since onions are a perishable crop, they must be harvested within 5-6 months For domestic consumption or through export consumption, keeping Rabi stocks beyond the shelf life will only lead to more storage losses,” she said. The secretary added that storage losses increased significantly after three months.
DGFT director general Santosh Kumar Sarangi said onion shipments were “virtually” allowed at a minimum price of $770 per tonne, adding that the MEP and export duties were framed keeping in mind the government Recent price trends and current international prices for kitchen staples available across time.
Sources said onion supply in the international market is expected to increase as Egypt lifts its export ban after increasing production by 300% and Pakistan also lifts its export restrictions.
