The Government today removed restrictions on onion exports by doing away with the minimum export price (MEP), a move aimed at boosting shipments.

“Requirement of MEP on export of onions stands removed,” Directorate General of Foreign Trade (DGFT) said in a notification.

In December 2013, the MEP was reduced to $150 per tonne.

The government had imposed MEP on onion in September 2013 and then it was raised several times to curb exports and boost domestic supplies as retail prices had shot up as high as Rs 100 per kg in major parts of the country. The country had to even import onion to control price rise.

MEP reduction has helped in checking exports, which fell to 11 lakh tonnes during April-January period of this fiscal against 18.22 lakh tonnes in the same period in 2012—13.

India produces around 17—18 million tonnes of onion a year. It is an essential kitchen staple and also a politically sensitive commodity.

Sharp reduction in onion prices have led to removal of MEP. The retail price currently ranged between Rs 15—20 per kg in the national capital.

With wholesale prices declining sharply due to bumper crop, farmers in producing states like Maharashtra have been protesting with demand for removal of export restrictions.

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