Indian govt amends export policy of onions to free for minimum export prices of $550 per MT
Onions and chana dal to be sold online at discounted prices | Details here
The Union Ministry of Commerce and Industry on Saturday (May 4), amended the export policy of onions from ‘prohibited’ to ‘free’ subject to minimum export prices of $550 per metric ton (MT) with immediate effect and until further orders. This comes after the government on Friday imposed export duty of 40% on onions with effect from Friday.
In a notification, the Directorate General of Foreign Trade (DGFT) says, “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 allows export of onions subject to a minimum export price of $550 per MT. It added that the notification will come into immediate effect.
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% export duty on onions up to December 31, 2023.
Last week, after nearly five months of export ban, the government on April 26, allowed export of 99,150 million tonne of onions, mainly sourced from Maharashtra, to six neighbouring countries.
On December 8, 2023, the government banned export of onions to ensure adequate domestic availability against the backdrop of estimated lower Kharif and Rabi crops in 2023-24 as compared to previous year and increased demand in international market.
On Friday, the government also extended the 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.