The Ministry of Commerce and Industry has recently announced the extension of the ban on onion exports until further notice. Initially enforced until March 31, 2024, the prohibition will now remain in effect until a future directive is issued. This extension was communicated by the Directorate General of Foreign Trade (DGFT), a division entrusted with managing import and export affairs, through a notification dated March 22.
Citing the authority vested in it by the Foreign Trade (Development and Regulation) Act, 1992, along with relevant sections of the Foreign Trade Policy, 2023, the Central Government revised Notification No. 49 dated December 7, 2023, concerning the export policy of onions. The notification reaffirmed the continuation of the export ban on onions classified under HS Code 0703-10-19 beyond the previously stipulated deadline of March 31, 2024.
While the ban persists, exceptions may be granted for onion exports to other countries based on specific requests and permissions from the central government. Notably, earlier this month, India permitted the export of 50,000 tonnes of onions to Bangladesh and 14,400 tonnes to the UAE. However, a quarterly ceiling of 3,600 tonnes has been imposed for exports to the UAE, as outlined in the DGFT notification.
Furthermore, the central government has established a Minimum Export Price (MEP) of USD 800 per tonne, effective from October 29, for onions exported on a free-on-board basis. This measure aims to regulate onion exports and stabilize prices in the domestic market.
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