The Directorate General of Foreign Trade (DGFT) has removed the Minimum Export Price on onions, which had been set at US$ 550 per tonne since May. It has also been decided to remove the existing minimum export price (MEP) of US$ 950 MT for the issuance of Registration-cum-Allocation Certificates (RCAC) for export of Basmati Rice.
The Indian government has lifted the minimum export price (MEP) restrictions for onions and basmati rice to boost exports and increase farmers’ incomes. This includes reducing the export duty on onions from 40% to 20%, effective from September 14. The higher duty, imposed in May, was initially intended to control domestic supply. These changes aim to enhance agricultural exports and support farmers in key producing areas.
The Directorate General of Foreign Trade (DGFT) has scrapped the MEP on onions, previously set at US$ 550 per tonne since May. Despite high retail prices, this move is intended to stimulate onion exports. India exported 2.6 lakh tonnes of onions this fiscal year, compared to 16.07 lakh tonnes in the previous year.
Commerce Minister Piyush Goyal announced the removal of the US$ 950 per tonne MEP on basmati rice, which is expected to boost exports and benefit farmers financially.
According to a statement from the Department of Commerce. “It has been decided to remove the current minimum export price (MEP) of US$ 950 MT for issuing Registration-cum-Allocation Certificates (RCAC) for export of Basmati Rice.”
The Agricultural and Processed Food Products Export Development Authority (APEDA) has been tasked with implementing this change and monitoring export contracts to prevent underpricing. The MEP had previously been lowered from US$ 1,200 to US$ 950 in October 2023 to prevent non-basmati rice from being falsely exported as basmati.
To further stabilize prices, the government has imposed stockholding limits on wheat traders, wholesalers, and processors. These limits will remain in place until March 2025, across the country.
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