The Indian government has lifted the ban on onion exports, providing a much-needed relief to traders in Maharashtra.
According to The Times Of India, the announcement was made on Saturday, just ahead of the upcoming Lok Sabha election phases, particularly in Maharashtra's onion-growing areas, aiming to ease tensions in the market.
The Director General of Foreign Trade (DGFT) issued a notification on Saturday, setting the Minimum Export Price (MEP) for onions at $550 per tonne.
Even though the government had initially banned onion exports, they later allowed limited exports upon receiving requests from certain countries like Bangladesh, Sri Lanka, and the UAE.
Meanwhile, onion traders and farmers, especially from Maharashtra, have been asking the government to lift the ban, saying it would help farmers earn better prices.
However, the government was hesitant, fearing that exporting onions could raise prices domestically.
In another move, the government decided on Friday to waive import duty on desi chana (Bengal gram) until March 2025 due to a possible decrease in chana production.
Over the past month, chana prices have risen by more than 10% to about 6,300rs per quintal in Delhi, up from 5,700rs last month.
Moreover, the government is closely watching food prices to ensure they don't increase during the ongoing elections.
