The government’s decision to lift the ban on onion exports has brought considerable relief to traders in Maharashtra, especially with crucial phases of the Lok Sabha elections approaching, particularly in Maharashtra’s onion-growing regions. The Director General of Foreign Trade (DGFT) issued a notification setting the Minimum Export Price (MEP) for onions at $550 per tonne. Although onion exports were previously categorized as “prohibited,” limited exports were permitted upon requests from countries like Bangladesh, Sri Lanka, and the UAE.
Farmers and onion traders, particularly from Maharashtra, had been urging the government to lift the export ban, arguing that it would help farmers fetch better prices. However, the government had been cautious, fearing that exporting the key kitchen staple might lead to a rise in domestic prices. Additionally, the government exempted ‘desi chana’ (Bengal gram) from import duty until March 2025, anticipating a decline in chana production. Moreover, the duty exemption on imports of yellow peas was extended for entries made on or before October 31, 2024.
During the past month, chana prices have surged by more than 10% to approximately Rs 6,300 per quintal in Delhi, compared to Rs 5,700 last month. Traders noted that India imports Bengal gram from countries like Australia and Tanzania. With the country in the midst of elections, the government is closely monitoring the prices of key food items to ensure that prices remain stable and do not escalate.
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