• The government lifted the ban on onion exports subject to a minimum export price of $550 per tonne.

• On December 8, 2023, the Centre had banned onion exports to control retail prices amid concerns over likely fall in production. During the last 4-5 years, the country annually exported between 17 lakh and 25 lakh tonnes of onions.

• On May 4, the Directorate General of Foreign Trade (DGFT) notified that export policy of onions is amended from ‘prohibited’ to ‘free’ subject to MEP of $550 per metric tonne with immediate effect and until further orders.

• Minimum export price is the price below which an exporter is not allowed to export the commodity from India.

• The latest decision can help boost income of a large section of farmers and comes ahead of the Lok Sabha polls in key producing regions including Maharashtra.

• The government has imposed a minimum export price (MEP) of $550 per tonne (around Rs 46 per kg) as well as 40 per cent export duty. Taking duty into account, the shipments will not be allowed below $770 per tonne (around Rs 64 per kg).

Directorate General of Foreign Trade (DGFT)

• Directorate General of Foreign Trade (DGFT) is an attached office of the ministry of commerce and industry. Right from its inception till 1991, when liberalisation in the economic policies of the government took place, DGFT has been essentially involved in the regulation and promotion of foreign trade.

• Keeping in line with policies of liberalisation and globalisation and the overall objective of increasing exports, DGFT has been assigned the role of a “facilitator”. The transition has been from prohibition and control of imports/exports towards promotion and facilitation of exports/imports, keeping in view the interests of the country.

• This Directorate, with headquarters at New Delhi, is headed by the Director General of Foreign Trade. 

• It assists the government in formulation of Foreign Trade Policy (FTP) and is responsible for implementing the Policy and schemes under FTP with the main objective of promoting India’s exports. 

• Further, it is responsible for implementation of Foreign Trade (Development and Regulation) Act, 1992 and Rules and Regulations notified thereunder. 

• The DGFT also issues authorisations to exporters and monitors their corresponding obligations through a network of 24 regional offices.

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