India on Saturday lifted the ban on onion export ahead of Lok Sabha election in Maharashtra, a state prominent for its onion production.
The Director General of Foreign Trade (DGFT) of India fixed the Minimum Export Price (MEP) for onion at $550 per tonne, reports Times of India.
Onion traders and farmers, particularly from Maharashtra, had been urging the government to lift the ban, arguing that it would help farmers receive better prices. However, the government refused to relent, fearing that the export of this essential kitchen item might lead to a surge in domestic prices.
During the ban on onion exports, limited exports were permitted upon requests from several countries, including Bangladesh, Sri Lanka, and the UAE.
India also announced on Friday that it would exempt 'desi chana' (Bengal gram) from import duty until March 2025, citing indications of a decline in the crop's production. Additionally, India extended the duty exemption on imports of yellow peas for entries made on or before October 31, 2024.
Over the past month, chana prices have risen by more than 10% to around Rs 6,300 per quintal in Delhi, compared to Rs 5,700 last month. Traders noted that India imports Bengal gram from countries such as Australia and Tanzania. The government has been closely monitoring the prices of key food items, particularly during the election season, to ensure that prices remain stable.