India removes minimum export price on onion

The government of India on Friday scrapped a minimum price threshold that it had set previously for exports of onion as it looked to pass on the benefit of international glut to Indian farmers. 

The government had previously fixed a USD 550 per tonne as the minimum export price (MEP), which essentially meant farmers could not sell their produce overseas at lower than this rate, reports PTI.

A DGFT notification issued on Friday removed the MEP with immediate effect.

The move comes ahead of assembly elections in Maharashtra, a key onion producing state.

The move would help promote exports of the commodity.

"The Minimum Export Price (MEP) condition on Export of onions is removed with immediate effect and until further orders," the directorate general of foreign trade (DGFT) said in a notification.