Government lifts minimum export price on onions and basmati rice to boost farmer benefits

The move would help promote exports of the commodity.

In a move to support Indian farmers and boost exports, the government on September 13 removed the minimum price threshold for onion exports. The Directorate General of Foreign Trade (DGFT) issued a notification lifting the Minimum Export Price (MEP) of $550 per tonne, which had previously limited farmers' ability to sell their produce internationally at competitive rates.

The removal of the MEP is expected to benefit farmers by enabling them to access the global market amidst an onion surplus. This decision is seen as strategic, especially with assembly elections approaching in Maharashtra, a major onion-producing state.

The DGFT’s notification said that the MEP condition is lifted "with immediate effect and until further orders," signalling an effort to boost the export potential of onions in the coming months.

Additionally, the government announced the removal of the minimum export price (MEP) of USD 950 per tonne for basmati rice. Commerce and Industry Minister Piyush Goyal said this move aims to enhance exports and increase farmers' income. The Department of Commerce confirmed that the MEP has been removed for the issuance of Registration-cum-Allocation Certificates (RCAC), facilitating smoother basmati rice exports.

(With inputs from PTI)