The Government of India, through the Ministry of Commerce & Industry, Department of Commerce, under the Directorate General of Foreign Trade (DGFT), issued Notification No. 10/2024-25-DGFT on 4th May 2024.
The amendment, exercised under the powers conferred by the Foreign Trade (Development & Regulation) Act, 1992, aims to modify the existing export policy of onions. Previously categorized as ‘prohibited’ for export, onions are now classified as ‘free’ for export. However, this transition is not without conditions. The revised policy mandates that onion exports are subject to a Minimum Export Price (MEP) of USD 550 per Metric Ton (MT).
This amendment holds substantial implications for both domestic and international stakeholders in the onion trade. By lifting the prohibition on onion exports, the Indian government aims to facilitate the movement of onions to global markets. This decision could potentially boost the income of onion farmers and enhance India’s position as a significant player in the global onion market.
However, the imposition of a Minimum Export Price (MEP) introduces a regulatory mechanism to ensure stability in onion prices and prevent volatility in the domestic market. The USD 550 per MT MEP acts as a floor price, safeguarding against undervaluation of onion exports and safeguarding the interests of domestic consumers.
*****
Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Vanijya Bhawan, New Delhi
Notification No. 10/2024-25-DGFT | Dated: 4th May, 2024
Subject: – Amendment in the Export policy of Onions.
S.O. 1906(E): In exercise of powers conferred by Section 3 read with Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No. 22 of 1992), as amended, read with Para 1.02 and 2.01 of the Foreign Trade Policy, 2023, the Central Government hereby amends the Export Policy of Onions in Chapter 07 of Schedule 2 of the ITC (HS) Export Policy, as under:-
| Tariff item HS Code | Item description | Existing Export Policy | Policy condition | Revised Export Policy | Revised Policy Conditions |
| 07031019 | Onions | Prohibited | Nil | Free | Export is subject to a Minimum Export Price (MEP) of USD 550 per Metric Ton (MT) |
2. The Notification will come into immediate effect.
3. Effect of this Notification:
The export policy of Onions is amended from ‘prohibited’ to ‘free” subject to MEP of USD 550 per Metric Ton (MT) with immediate effect and until further orders.
(Santosh Kumar Sarangi)
Director General of Foreign Trade
Ex-Officio Additional Secretary, Government of India
E-mail: [email protected]
(Issued from File No. 01/91/191/060/AM-24/EC/e-38291)
