The Indian government has recently removed minimum export price thresholds and reduced export duties for onions and basmati rice, aiming to boost agricultural exports and improve farmers' earnings.

As of September 14, the export duty on onions has been cut to 20% from 40%, a reduction from the duty that had been in place since May 4. Additionally, the government has abolished the Minimum Export Price (MEP) for both onions and basmati rice. This move comes ahead of the assembly elections in Maharashtra and Haryana, with Haryana being a significant producer of basmati rice.

Commerce and Industry Minister Piyush Goyal stated that eliminating the $950 per tonne MEP for basmati rice and reducing the onion export duty will help increase exports and support farmers. The Agricultural and Processed Food Products Export Development Authority (APEDA) has been directed to implement these changes and oversee export contracts to ensure fair pricing.

Earlier in the year, the government had set the MEP for basmati rice at $950 per tonne, down from $1,200, due to concerns that higher prices were negatively affecting exports. The decision to lift this price floor is expected to facilitate better trade conditions.

For onions, the government had imposed a $550 per tonne MEP in May, following the lifting of a previous export ban. This latest removal of the MEP aims to further enhance export opportunities despite the current high retail prices of onions, which average Rs 50.83 per kg nationwide.

In related measures, the government has also tightened stock limits for wheat traders and processors to combat price hikes and prevent hoarding, effective until March 31, 2025.