Centre Lifts Ban On Onion Export, Fixes MSP To Woo Farmers, Traders Ahead Of Phase 3 Polling In Maharashtra

New Delhi: The government announced that it had lifted the ban on onion exports on saturday. The decision is expected to greatly benefit traders in Maharashtra. However, the government has set a minimum export price of USD 550 per tonne for onions amid the ongoing Lok Sabha elections in India. The decision arrives just before upcoming voting phases in Maharashtra's key onion-producing regions.

The government reinstated a 40 percent export duty on onions last night. In August of last year, India introduced the same rate i.e 40 percent export duty on onions which was scheduled to remain in effect until December 31, 2023. (Also Read: Six Adani Group Companies Receive Notice From SEBI; Know Why)

"The export policy of onions is amended from prohibited to free subject to MEP of $550 per metric ton with immediate effect and until further orders," The Directorate General of Foreign Trade (DGFT) announced in a notification. (Also Read: RBI Tweaks Rules To Cut Risk Banks Face In Exposure To Capital Markets)

The Ministry of Consumer Affairs, Food and Public Distribution last month announced in an official statement that the government had approved the export of 99,150 tonnes of onions to six neighboring countries including Bangladesh, UAE, Bhutan, Bahrain, Mauritius, and Sri Lanka.

Onion traders and farmers, especially from Maharashtra had been demanding for the lifting of the export ban. They argued that it would allow farmers to get a better price. However, the government had resisted these demands as they were concerned that allowing onion exports could push up domestic prices.

Here's a list of the constituencies where Maharashtra's Phase 3 polls will be held:

Baramati, Raigad, Dharashiv, Latur (SC), Solapur (SC), Madha, Sangli, Ratnagiri-Sindhudurg, Kolhapur, and Hatkanangle. Notably, the phase 3 voting in Maharashtra is set to take place between 7 AM to 6 PM.