Centre Defends Onion Export Ban, Says MEP Was 'Temporary' & Needed To Protect Consumers Amid Price Spikes
The Centre has clarified on Onion export ban and imposition of Minimum Export Price (MEP), were 'temporary' and 'necessary' to protect consumers, especially low-income households, during years when adverse weather conditions and lower arrivals led to sharp spikes in retail prices. On fair-farmer remuneration, the Centre explained that it balanced consumer price stability and...
The Centre has clarified on Onion export ban and imposition of Minimum Export Price (MEP), were 'temporary' and 'necessary' to protect consumers, especially low-income households, during years when adverse weather conditions and lower arrivals led to sharp spikes in retail prices.
On fair-farmer remuneration, the Centre explained that it balanced consumer price stability and farmer remuneration by monitoring availability, arrivals, buffer stock position and price trends of Onions across the country. The Centre emphasized that all Onion export restrictions were withdrawn immediately once domestic availability stabilised. It was also noted that market prices of agricultural commodities depend on multiple factors, including arrivals, storage practices, traders' behaviour, quality variations and global price cycles.
The Government has detailed Sector-Specific steps taken to boost India's exports in Textile, Agriculture, Pharmaceuticals, Engineering.
Between May, 2024 and March, 2025 the Directorate General of Foreign Trade (DGFT) issued several notifications amending the onion export policy, from an export prohibition to a free export regime. Prior to these notifications Onion exports were largely 'prohibited' to meet domestic demands. The Key Policy Interventions are as follows:
- Notification No. 10/2024-25 allowed export of Onions subject to Minimum Export Price (MEP) of US Dollars 550 per Metric Tonne
- Notification No. 10/2024-25 the MEP condition with immediate effect
- Notification No. 19/2025- From April 01, 2025 the Government withdrew 20% export duty on Onion (HS 0703 10) export
To support farmers during price moderation to prevent distress sales, Onion Buffer was created under Price Stabilization Fund. The Onions were procured by the Government through National Agricultural Cooperative Marketing Federation of India and National Co-operative Consumers' Federation of India at market-driven and farmer-friendly prices. The Centre also outlined steps to mitigate post-harvest losses and increase farmer incomes.
As Export facilitation measure, the Centre stated that it has backed Exports with flagship Export Promotion and Digital Infrastructure Schemes with a total outlay of ₹25,060 crore for FY 2025-26 to FY 2030-31. It was informed that with ₹20,000 crore credit guarantees, PLI schemes worth ₹1.97 lakh crore in 14 key sectors, Expanded ECGC cover up to ₹80 crore for MSMEs together with 15 Free Trade Agreements and 6 Preferential Trade Agreements.
“..the Government is proactively working to diversify India's export basket and reduce dependency on traditional markets by identifying and facilitating entry into new and emerging global markets…”
The Export Incentive Schemes include Rebate of State and Central Taxes and Levies (RoSCTL) Scheme - Zero-rated exports for apparel/garments/made-ups, PM MITRA Parks- World-class textile infrastructure, SAMARTH Scheme- Skilling program for textile sector, National Programme for Organic Production (NPOP): Certification and promotion of organic exports, BHARATI Initiative- Empowering 100 agri-food/agri-tech startups for export enablement.