The government of India has lifted the minimum export price condition on onion exports with immediate effect, according to a notification issued on Friday.

In May 2024, the Modi administration had lifted the ban on onion exports but had set a minimum export price of $550 per tonne.

However, this measure, along with a 40 per cent export duty, led to a significant drop in exports.

Indian onion exports in June are estimated to have fallen by over 50 per cent, as the higher cost made Indian onions less competitive compared to those from other countries, according to exporters.

By July 31, 2024, India had exported 260,000 tonnes of onions in the 2024-25 financial year.

For the 2023-24 financial year, total onion exports were 1.717 million tonnes.

Major importers of Indian onions include Bangladesh, Bhutan, Bahrain, Mauritius, and the United Arab Emirates.

However, since the imposition of the minimum export price, Bangladesh has turned to imports from China and Pakistan.