In a move aimed at benefiting Indian farmers and boosting the country's onion exports, the government has eliminated the Minimum Export Price (MEP) for onions. The Directorate General of Foreign Trade (DGFT) issued a notification on Friday, announcing the immediate removal of the $550 per tonne price threshold that had previously restricted the sale of onions abroad.
The decision comes as part of a broader strategy to leverage the current international glut of onions. By removing the MEP, the government hopes to enable Indian farmers to take advantage of global market conditions, thereby increasing their export opportunities and potentially stabilising domestic prices.
The timing of the policy shift is notable, coinciding with the upcoming assembly elections in Maharashtra, a crucial onion-producing state. Analysts suggest that the move could be an effort to gain favor with local farmers and boost the state's economic performance in the lead-up to the polls.
"The Minimum Export Price (MEP) condition on export of onions is removed with immediate effect and until further orders," the DGFT stated in its notification. This policy adjustment is expected to enhance India's competitive edge in the global onion market and provide relief to domestic producers facing price pressures.
(PTI inputs)
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